Retirement Planning –Why it’s better to start earlier than later

As humans, it is expected that as the years go by we also grow older and with age comes life experiences and knowledge. These experiences teach us a lot of things inclusive of the importance of delayed gratification. Unfortunately, the state of the modern day economy has taught a lot of individuals that the values of the cash of today might be more than the cash of the future. So even with the knowledge of the importance of having savings for retirement, most people tend to procrastinate and end up regretting it.

Most companies are now stepping down on pension plans for staff and even social security is becoming a worrisome issue so it is wise to start preparing that retirement plan to have something to fall back on. If the planning process is delayed then you have more to lose in terms of future gains.

Planning Early is Key

To get the point across of how early retirement planning is beneficial, the example of two men will be used to explain further. A 22 year old college graduate begins to save as soon as he gets his first job but the 35 year old man waits till he is married, with a mortgage loan and two children before he realizes that it is time to start saving for retirement.

With the annual rate of return assumed to be 3% and an investment of $5000 annually, the 22 year old man will earn a sum of approximately $460,000 while the 35 year old who delayed planning will only have $257,000 which is significantly lesser than the 22 year old. The lesson to be taken from the example is that when it comes to retirement planning, waiting more than necessary can prove expensive and this is also the case in insurance planning.

Anyone with a job that has the responsibility of taking care of themselves alongside family members knows that life is filled with curveballs, accidents, burglaries, natural disasters etc. can happen anytime. These incidents bring about their own costs and if nothing is put in place for them, then expenses pile up. The following are two of the benefits that can be attributed to early retirement planning:


Everyone knows that when it comes to investing, the sooner you get in, the larger the amount of rewards. It is also known that the ventures that have higher volatility give the highest yield. This means that if you get in early, you have the chance to recover if something were to go wrong and take on more investments that might yield better results. This can be related to retirement planning as interest rates can be up one day and down another day, getting in early improves your chances of getting more returns.


Saving early indicates being cautious in how money is spent. Investing early means that spending is based on a budget and unnecessary expenses can be done without. The goal set is to earn money that can be put into savings.


Real Estate Investing for Retirement

One of the ways by which savings can be kept aside for retirement is by investing in real estate. It is actually lauded as being one of the better ways of investing money seeing as it allows for individuals to earn passive income for a long while.

Although one of its drawbacks is that it requires a lot of liquid cash to attain a property, its returns are worthwhile when compared to other investments. It is important to check out all the loopholes associated with investing in real estate before making any commitment.

The following are ways in which real estate can be invested in wisely:

Return on Rent

Another way of investing in real estate is by buying a house that can be rented out for a period of time. The house can be bought using mortgage and the rent collected can be used to settle all expenses from maintenance to taxes till it is written off.

If the property is in a prime location, this means that more rent can be charged as rent is a volatile thing dependent on location. The best thing to do is to charge enough rent to help with the monthly mortgage payments as well as earn a profit.

Furthermore, if you invest in a luxury house now, it will most likely increase in value over time. Take the Las Vegas luxury real estate market, these homes are the perfect fit for retirement. While you work in a different city, you can rent that house out, and once you’re ready to retire you can either decide to live in your Las Vegas home, or sell it and find a different home. This Las Vegas luxury real estate agent will be more than willing to assist you in your search for your dream retirement home.

Real Estate Investment Fund (REIT)

Unlike the real estate trading, this form of real estate investment is considered the easiest. The money to be invested is pooled into a fund and is often created if a trust or company utilizes the funds of the investor in buying or operating property.

It can also be viewed as another form of stock exchange as the company or trust involved still has to pay up to 90% of the taxable profits to the various parties that invested in the form of dividends. The dividends that are paid out receive exemption from being liable to corporate income taxes therefore meaning more money at your disposal. This type of investment can bring about a regular source of income.

Real Estate Trading

On the real estate market, real estate trading is considered to be one of the fastest ways of making money. This involves the purchase of properties from sellers by the traders; the bought property is then held temporarily till the market indicates that the property is going for a higher price before being sold off.

Sometimes, the traders can choose to remodel the property so as to attract a higher price in the market, this is commonly known as “flipping”. The trader will purchase a property that is on the high side or greatly undervalued with the primary intention of doing everything possible from remodels to listings to increase the value. This is insurance that the trader will receive a profit from the eventual sale of property.

The above are the best ways to invest in real estate so as to prepare for retirement. The best strategy when it comes to real estate is to keep yourself informed with the latest trends of the market.

Buying a House is Investing in Your Future

The matter of personal finances has been an issue which most Americans are infamous for. Money is something which is spent on a constant basis but saving is another thing that becomes hard to do.

As a result of that, there have been worries on the part of both the government and economist as to whether in old age, most Americans would still have savings to live on. If saving money is not something you are fond of, then it is best to put the funds into something rewarding like purchasing a home so there is one less thing to worry about.

Over time, the process of buying a house has been deemed as a long term investment that is more likely to reap rewards in the future. This perception is actually quite true. Instead of helping a landlord pay off their mortgage, why not acquire your own mortgage and pay it off yourself so the end result would be you having a home of your own.

Here are some facts to think over when considering buying a home as opposed to renting:

– Before making a decision on which way to go, the concept of actually purchasing a home should be viewed in the form of making a commitment into a better future, that is, a sound decision in which rewards are to be enjoyed in years to come.

– It is well known in the real estate market, that the price of properties never go down that is, they appreciate over time. So if in future you decide to sell off the house, then the cost of buying it and paying off the mortgage are most likely going to be recovered.

– If you are a young individual making your first home purchase, then when in the later age of 50 and 60, you are more likely to be mortgage or rent free with a valuable asset at your disposal.

– The pride of ownership associated with a property is one that cannot wane over time. It means that you have a place in which your family can grow and set down roots. It brings about a sense of belonging to a community.

– Due to the fact that the house is your own property, there is the freedom of expression as the place can be modeled and decorated to fit your specific needs.

– If you are in need of extra funds, then there is always the option of letting out one of the rooms.

– Owning a house also makes it easier to apply for a loan in a financial institution as it serves as collateral. It can also be used to get an extra line of credit if needed.

– Buying a house means that the money is stored in a more physical asset as a safeguard for the future. If the money had been used for rent, then it would have been helping someone else pay their own mortgage.