Automatically invest your spare change
You don’t always have to put away large sums to move toward your retirement goals. Ten dollars a week could make a difference – if you’re smart about what to do with 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 — the coins that would wind up in your pocket if you were paying cash — into a smart investment portfolio.
Let’s say you purchase a doughnut for $2.30. Before you’re done licking the sugar off your fingers, Acorns will round the amount to $3.00 and invest the 70-cent difference for you. Look at this math: $2.50 worth of daily round-ups add up to $900 per year — and that’s before your savings earn money in the market.
Plus, if you sign up now, you can get a $20 bonus investment.
Maximize your current savings
57% of Americans put their money in traditional savings accounts, which have an average percentage yield of only 0.46%, according to a survey by CNBC Select and Dynata Banking Behaviors.
You can easily get a rate of return over ten times higher by putting your savings in a certificate of deposit (CD). A CD is a low-risk savings account that offers a fixed interest rate for a specified period. You get a higher interest rate as a reward for that commitment.
With SavingsAccounts.com, you can shop and compare top certificates of deposit rates from various banks nationwide.
Their extensive database shows the most competitive rates, with daily rate updates and personalized recommendations based on your risk preferences and time horizon so you can find the right CD to meet your retirement savings goals.
Find additional sources of passive income
Real estate is another type of investment recognized for adding stability to your portfolio. But historically, this asset class has been reserved for elite investors.
Now, Arrived has changed this. With the Arrived Private Credit Fund, you can invest in short-term loans used to fund real estate projects, such as renovations, property rehabs, or even new home construction projects. The minimum investment is $100, meaning that this opportunity is open to every type of investor.
All of the loans are secured by residential housing as collateral — so even if the borrowers default, the underlying property can be sold to keep the fund healthy.
Historically, the Arrived Private Credit Fund has paid 8.1% annualized dividends to investors, distributed on a monthly basis. Dividend returns on stocks don’t even come close — the long-term average dividend yield of S&P 500 companies is 1.83%.
Supercharge your retirement contributions
Take advantage of your employer’s 401(k) matching program if that’s an option. Work toward increasing contributions whenever you receive a raise or bonus.
If you’re looking for other options to fund your retirement, consider investing directly in precious metals. Gold, for example, typically offers more stable returns than stocks – allowing you to safeguard your retirement from economic volatility.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of American Hartford Gold.
Gold IRAs allow 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, making it an attractive option for those seeking to ensure their retirement funds are well-shielded against economic uncertainties.
You can get up to $15,000 in complimentary silver and a free information guide when you sign up with American Hartford Gold.
Contribute to a Roth IRA
Opening a Roth IRA can help you build a sizable nest egg for your golden years while getting some tax advantages. Contributions made on Roth IRAs are not tax-deductible, meaning any contributions you make come from your after-tax paycheck.
Earnings in your account grow tax-free. That means you don’t have to pay capital gains tax when the value of your investments rises or pay taxes on any dividend or interest income generated by your portfolio.
But there are some rules you need to follow if you want to make withdrawals tax-free, such as keeping your account for at least five years and reaching 59 and a half years of age. There can be certain exceptions, though, like paying for higher education or buying your first home.
Sounds confusing? You can consult a financial advisor specializing in retirement planning to guide you through this process. RothIRA.org can help you find FINRA/SEC registered advisors near you for free.
Simply answer some basic questions about yourself and your finances, and RothIRA.org will pair you with two to three vetted advisors.
Then, you can book a free, no-obligation consultation to see if they’re the right fit for you. You can interview multiple advisors with no commitment to hire before selecting the right match for you.
