For many, retirement seems like a whole lifetime away. We’ve all been there at some point.
When you’re young, and especially in your teens and 20’s, planning for the future just seems so…boring. Not to mention, it seems like it might be too early, anyway. When you’re that age, it can be hard to even look past Saturday.
As a youngster, having extra cash seems like such a commodity. You want to spend it on things that you can enjoy now, not something that you won’t need for another 30, maybe 40, years. But we’re here to tell you, setting an extra chunk of change aside weekly, monthly, or even yearly, can pay off big time when the time comes for you to retire. The earlier you start thinking about retirement, how to save, and what type of high return investments are available to you now (and in the future), the better off you will be.
Here are just a few reasons why we think you should start saving for retirement now.
You Can Save On Taxes
Contributing a small percentage of your monthly earnings into a savings account, whether it be a typical savings account, an employer or self-directed 401K account, an IRA, or other type of savings vehicle, can help you save money in the long run. That’s because typically, these types of accounts are tax-deferred, meaning you won’t pay taxes on the income you set aside right now, which can help you to reduce your income taxes and create a compounding effect on your investments.
Welfare Won’t Be Enough
The typical American needs around $50,000 per year in retirement to live a comfortable lifestyle. If you decide not to save early, that figure could be hard to reach reasonably. Social security and other retirement welfare programs, while nice supplements that can help you get by if that’s what you choose, likely won’t be enough to afford you the lifestyle you’ve grown accustomed to. Retirement is the time in your life where you want to do things that you never got to do while working, which means it’s no time to be frugal and miss out on life experiences before it’s too late. Having a retirement plan will help you receive the income you need to thrive in retirement and make those years your best yet.
You Should Enjoy Retirement
Piggybacking off that last point, your retirement should be thoroughly enjoyable. You spent all your life going to school, studying, learning, growing, and working hard to make a comfortable living. When the time comes to retire, you should be able to enjoy it. Every hardworking American dreams of the days where they can lounge on the beach, work in the garden, and travel the globe. Those aspirations will only be possible if you save properly throughout your working years, starting as early as possible.
How have we not touched on this one, yet? Honestly, saving for retirement is an easy thing to do. With all of the investment options out there, it’s fairly simple to find one that will provide high returns and benefits that outweigh the negatives. Chances are, your employer offers some sort of retirement savings account, such as a 401K, that you can make contributions to throughout your tenure. As you grow in your career and begin to earn more, you can invest more and more of those earnings (tax-deferred, remember), which will set you up nicely when the time comes to rest on your laurels. Additionally, you will find several individual options that can help you save, such as a traditional or Roth IRA, annuities, and more.
You Can Invest Later
Of course, if you do decide to save for retirement at an early age, and you have a nice chunk of change to work with, you can use that money to put into a high return investment that will not only help you compound your savings, but also generate you a reliable stream of income for the years to come. Making an investment in some sort of fixed annuity, such as the Tactical Wealth Fixed Income Fund, as you near retirement can help you achieve financial security and peace of mind even after you stop working.
The Fixed Income Fund was designed to do that by providing monthly income at a high interest rate, simply by purchasing mortgage and trust deed loans throughout the United States. Plus, you can even use some (or all) of the savings you have in your 401K or IRA to invest and make even more on your life’s savings. And don’t worry, our fund keeps the safety of our investors’ money at the forefront, which is why we utilize a variety of innovative tactics to make ours one of the lower risk, higher return investments available. It’s easy to understand, and a great way to help make your retirement some of the best years of your life. Start saving for the future today, and contact Tactical Wealth to learn more about our Fixed Income Fund when the time comes for you to achieve peace of mind.