Tips to Help you Boost Your Retirement Savings – Whatever your Age
Although many people dream of early retirement, only a few have the know-how and motivation to achieve it. Some people get closer to retirement by winning the lottery, inheriting money or receiving gifts from relatives. However, since it is not a wise idea to rely on luck, it is important to do the hard but necessary work of planning and saving for retirement. You may also want to put money in an investment plan that guarantees a secure financial future.
Treasury bonds are arguably the safest investment plan to get you closer to retirement. Although they offer lower yields than other investments, they enable you to enjoy tax advantages and sure income from your portfolio. If you are looking to retire early, you should consider investing in this type of bonds.
Insurance cash value
A permanent life insurance policy will have a cash value from which the policyholder can either make withdrawals or take a loan. The good news is that this money will not only earn interest but will also not be taxed until such a time that you withdraw some cash. If you decide to take a loan, the cash value will not be subject to taxation.
Taking a long-term position on equities is a smart and tax-efficient way to grow your portfolio. Investing in blue chip companies will increase your chances of benefiting from capital gains as well as dividends. Apart from being able to withdraw your funds at any time, a consistent rise in dividends will act as a hedge against inflation.
Tax exempt bonds
State and municipal bonds are great investment plans for anyone looking for a tax-efficient investment from which they can draw passive income. Mostly, bond holdings in your state of residence will be exempt from taxes, a factor that will ensure higher income and get you closer to retirement.
Real estate investments have numerous tax benefits says Jake from Wealth Stake, making them a popular investment plan among people looking to retire early. Investment in real estate will also give you a decent enough income to enjoy a modest retirement.In order to make the most of these investments, you should consider taking advantage of compound interest as well as minimizing taxes. Real estate investments present a great opportunity to achieve both.