Are you behind?
It is worth noting that half of U.S. retirees have less than $145,000 saved, according to a Clever Real Estate retirement survey, about four times less than retirement plan provider Fidelity recommends for retirement.
A shocking 37% of retirees report having no retirement savings at all. This number has been growing due to various factors, including 40% of retirees being forced to take early retirement — for reasons ranging from personal health to being made redundant by an employer.
With so many factors to consider, it’s important to understand exactly what your financial goals are and how to prepare accordingly. It may be worth worth your while to connect with a financial advisor who can help you navigate the retirement planning process can help bring you peace of mind.
WiserAdvisor is a platform that connects you with qualified financial advisors who can create a customized financial plan for your retirement needs.
To get started on your retirement plan, simply fill in your info, browse your advisor matches with WiserAdvisor’s comparison tool, then book a free consultation within minutes to lock in your best financial future.
Factors impacting retirement planning
According to experts like Suze Orman, even if you have a cool $2 million in the bank for retirement, that’s still ‘chump change’. She warned you’ll need plenty more to retire comfortably if you expect to live into your 90s.
The figures are wide ranging. But that’s to be expected, given everyone’s golden number is different. No matter the amount you’re aiming for, starting sooner rather than later is always better.
If you want to put boost your nest egg over time without having to think about it, you can use Acorns to start saving and investing for retirement with just your spare change.
When you make a purchase on your credit or debit card, Acorns automatically rounds up the price to the nearest dollar and places the excess into a smart investment portfolio. This way, even the most essential spending translates to money saved for the future.
For those looking to enhance their investing strategy as well, Acorns offers different tier memberships, including a gold tier that allows you to customize your portfolio by adding individual stocks and includes a retirement account with a 3% IRA match.
If you sign up for Acorns today, you can receive a $20 bonus investment.
More ways to diversify IRA
Whether or not you’re behind, a quick win to accelerate your retirement pot is to maximize your IRA contributions. For 2024, the annual contribution limit is $7,000 if you’re under 50, or $8,000 if you’re over 50.
Contributions to a traditional IRA may be tax-deductible, so you can lower the taxable income you report in the year you make contributions. The money then grows tax-deferred, which means you’ll pay taxes on it once you withdraw the funds during your retirement. This can play to your advantage if you expect to be in a lower tax bracket once you retire. Be careful not to end up hit by a tax torpedo, where your Social Security benefits actually put you in a higher tax bracket than you anticipated.
Contributions to a Roth IRA differ because they’re made with your after-tax dollars, and your earnings grow tax-free. Withdrawals during retirement are also tax-free, so long as you meet the right conditions. This account is more beneficial if you anticipate you’ll be in a higher tax bracket once you retire.
But the next question after making your contributions is what to put those funds toward. There are plenty of investments you can make within an IRA, and the right mix will depend on the level of risk and return you’re seeking.
For example, you can consider adding precious metals to your IRA, such as setting up a gold IRA with the help of Thor Metals.
Instead of being made up of stocks and bonds, a gold IRA allows you to directly invest in precious metals and merges the tax advantages of a traditional retirement account with gold’s capacity to hedge against inflation and market volatility.
Thor Metals is an industry leader in precious metals and authorized dealer for the U.S. Mint and they can help you seamlessly manage the complexities of setting up and managing your gold IRA. They also partner with the top IRS-approved depositors to make sure your metals are stored safely.
You can fill out your name and email to get a free 2024 Wealth Protection Guide to help you determine if this investment is right for you and your retirement.
Real estate investing for retirement
On the other hand, platforms like Arrived and First National Realty Partners allow you to diversify your IRA with income-producing real estate investments.
Arrived lets you invest in residential rental properties without taking on the work of being a landlord. Backed by world-class investors like Jezz Bezos, the company offers SEC-qualified investments and flexible investment amounts.
The simplified investing process allows accredited and non-accredited investors to tap into this inflation-hedging asset class for a more diversified retirement portfolio.
Here’s how it works: Start by browsing a curated selection of homes, vetted for their appreciation and income potential. Once you find a property you like, you simply choose the number of shares you want to buy and the Arrived team takes care of all the details.
And residential properties aren’t the only way to invest in real estate through an IRA.
Commercial real estate has long been touted as a wise investment for adding stability to your portfolio, outperforming the S&P 500 over a 25-year period.
First National Realty Partners (FNRP) provides access to high-quality commercial real estate investments, allowing accredited investors to access institutional-quality commercial real estate investments — without the legwork of finding deals yourself.
The team has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart, and Whole Foods, and provides insights into the best properties both on and off-market. You can engage with experts, explore available deals and easily make an allocation, all on FNRP’s secure platform.
