All of us think about the time when we retire and worry about the amount of pension we will get. Trying to pay in more, taking out an extra insurance, and investing in different funds is the most common way of topping up retirement incomes. However, there are some unconventional methods that have worked for many, and helped them achieve financial freedom after they stopped working. If you would like to secure your retirement income, you might have to think outside of the box. See some examples of raising more money for your future pension below.
If you are looking to get more out of your investment, you might want to look at an unconventional IRA and take some risks. You could sit down with a financial advisor to find out which options promise the best long term return. In recent years, the popularity of Bitcoin IRA accounts has risen significantly. They are easy to open and manage, and usually offer a higher than average return. Other options include coins, private mortgages, and investment into new businesses. While you are risking more than with a regular savings IRA, your potential returns are also significantly higher.
If you manage to get hold of a cheap property a decade or so before your retirement, you can let it out while you are still working and put some money into your retirement fund. You will get a regular income, and after you retire, you can even sell the property for profits. Make sure that the income you receive on the property covers your costs, including insurance, maintenance, taxes, and mortgage.
On the long term, investing in properties can deliver higher returns, and help you top up your retirement income. Having a second property is a good way of preparing for emergencies, as well. You can never assume that your health will remain the same until you retire. If you have an extra income, you can survive the periods you cannot work.
Gold and Silver
You could invest in gold and silver, to make sure that you maintain or increase the value of your savings over time. Gold or silver coins or collectible items are the best option, as their value can go up significantly. Artwork, gold bullion, and platinum are popular among people planning for the future. There is a list of metals you can purchase with IRA funds, and you can start taking funds out as soon as you reach the age of 70.
Getting a Wine Collection
Those who know wine can invest into a couple of bottles that are likely to get more expensive over time. Look out for a well-known region’s produce and a year when there was a limited production. The fewer bottles are available on the market in that particular year the higher the future value of your wine collection will be. Bear in mind that you might need to invest in a wine cooling system or a cellar, to make sure that the quality of the drink is not compromised. Still, if you spend some time choosing items for your collection, you can sell it for a decent profit after 10-20 years.
Holding On To Your Car
If you have a rare car, with original features, think ahead. Its value might go up over time. Just look at the previously unpopular Dodge models that fetch millions today. You can buy a new car to keep the mileage of the future collectible vehicle low, and store your vintage car in the garage to preserve its condition.
Plan on Downsizing
You might be asking yourself why some people have no retirement savings. Some believe that if they build up equity on their home, they can sell on, buy a smaller and cheaper property, and live comfortably for the rest of their lives. Provided you don’t have a family you need to support when you retire, you can sell your house, buy a condo in Central America, and put the savings into your bank to generate extra income. All it takes is careful planning and keeping an eye on the property market trends.
Most people nearing retirement age worry about the future value of their investments. Your pension might not allow you to afford everything on your bucket list. To top up your retirement income, sometimes you need to think outside of the box, implement creative solutions, keep an eye on current and future trends, and have a discussion with an investment expert. Choose the option that carries just the right amount of risk and promises the highest return, and you can spend your retirement years comfortably.