‘The biggest Ponzi scheme on Earth’
Nobel Prize-winning economist Milton Friedman once called Social Security “the biggest Ponzi scheme on earth.”
Concerns over the sustainability of the program have heightened more recently, with the Congressional Budget Office projecting the exhaustion of the Social Security Old-Age and Survivors Insurance Trust Fund by the fiscal year 2032.
Instead of solely relying on Social Security for your retirement, you can also take matters into your own hands. Proactively investing and saving on your own can provide stability amid Social Security’s uncertain future.
Here are two ways to do just that:
Real estate
Investing in real estate is widely regarded as a robust strategy for retirement planning due to its potential for generating passive income and capital appreciation over time.
Well-chosen properties can offer a reliable source of rental income, which can be used to cover living expenses in retirement, reducing dependency on traditional retirement savings or Social Security.
Additionally, real estate often appreciates over time, as property values and rental rates tend to increase with the cost of living.
These days, you can invest in rental properties without becoming a landlord. Arrived is an online platform where you can invest in shares of rental homes without taking on the responsibilities of property management.
Aimed at lowering the barrier to entry for rental property investing, Arrived is backed by Jeff Bezos and boasts over 250,000 registered investors.
For those feeling a tad more ambitious, consider First National Realty Partners, a platform that enables individual investors to tap into institutional-quality, grocery-anchored commercial real estate.
As a private equity firm, FNRP acts as the deal leader, providing expertise, doing the legwork and streamlining the process, while investors passively collect distribution income.
Gold
Precious metals — particularly gold — have been a popular hedge against inflation. The reason is simple: They can’t be printed out of thin air like fiat money.
Moreover, investors often rush toward gold in times of crisis, making it the go-to safe haven asset.
Amid surging inflation and geopolitical instability, gold prices have reached new heights, now standing at over $2,150 per ounce.
The most direct way to play the precious metal is to own bullion. Investors can also buy shares of gold mining companies or ETFs.
One way to invest in gold that also provides significant tax advantages and retirement security is with a gold IRA through Goldco.
Opening a Gold IRA allows investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold.
This makes it an attractive option for those seeking to ensure their retirement funds are well shielded against economic uncertainties.
A tailored retirement plan just for you
Ultimately, everyone’s financial situation is unique, characterized by different obligations, goals and risk tolerance.
While we all aspire to build retirement portfolios filled with shock-proof assets, many Americans also face other financial responsibilities, like mortgages or student loans.
Ensuring you have enough money to meet current financial obligations and invest for the future can be a difficult task to tackle on your own. This is why consulting a professional is important.
WiserAdvisor is an online platform that connects you with vetted financial advisors. All you have to do is answer a few questions about yourself and your finances, WiserAdvisor matches you with a few FINRA/SEC registered financial advisers best suited to help you map out your investing and retirement goals and develop a plan to achieve them.
You can then book a free, no-obligation consultation to see if they’re the right fit to help you get on track for the retirement you want.
