The baby boomer generation is heading toward retirement. This is the time in your life when you want to be safe with your money and investments. However, so many people who are nearing retirement age are making silly mistakes with their retirement money. What should they be doing as they prepare to stop working?
Stop Taking On New Debt
A couple of years before retirement is not the best time to buy a house or a car. Do you really want to be paying a mortgage on a fixed income? The better move would be to sell whatever home you are living in. Selling your current home should provide you with enough money to buy a smaller home plus put money away for traveling and other expenses.
Purchase Rental Houses
Rental homes can be a great way to make sure that income is always coming in. If you don’t want to be a landlord, you can hire someone to watch over your properties for you. This income is taxed like ordinary income. This means that you can be technically in business for yourself without having to pay business taxes.
Invest In Gold
Gold will never lose its value. Therefore, it is one of the safest ways to grow your money while making sure you don’t lose it either. Gold can be purchased from brokers, individual sellers and can even be purchased through an IRA program. Allocating a certain percentage of your portfolio to gold when you are still working can allow you to grow your money rather quickly. This is because gold grows more during a weaker economy.
Find A Good Financial Planner Or Adviser
You want to find someone who can help you manage your money in an effective way. Walter Wisniewski Paragon can help you develop a plan that will minimize your tax obligation, help you plan your estate for when you pass as well as any other financial planning needs you may have. Having a trusted adviser means that you can make financial decisions without having to rely solely on your own expertise.
When it comes to your money, you want to make sure that you are doing what is best for yourself. Get a trusted adviser, invest in safe commodities such as gold and don’t take on new debt just before retirement. Following these rules will allow you financial security for the rest of your life.