4 Financial Investments That Pay Off When You Hit Retirement

A staggering number of young professionals haven’t started saving for retirement. This is startling, especially considering that many economists anticipate public entitlements like social security to run out over the next few decades. It’s important that working professionals start thinking about their retirement sooner rather than later.

To help you get started, here are four financial investments that pay off when you hit retirement. Remember, by living frugally now, you can live a lot more comfortable down the road.

Individual Retirement Account (IRA)

An individual retirement account, also known as an IRA, is a retirement fund that you invest in independently. It’s not managed or controlled by your employer. There are limits to how much you can add to your IRA each year, but if you invest the maximum amount on an annual basis, you can see huge benefits at retirement.

401K

A 401K is a retirement fund that you invest in through your employer. While it doesn’t have the same potential of a high payout that an IRA does, most 401Ks have the added bonus of employer-matching, which means that your company will match whatever you put into your 401K. Ideally, you should have both a 401K and an IRA to maximize your earnings when you retire.

Real Estate

No investment is more valuable than real estate. Whether you invest in adult community homes for sale, single-family homes or apartment complexes, real estate almost always appreciates in value and has the potential to create a very generous payout for the investor. 

Real estate generates income by serving as a rental property for the owner or by generating a great profit when the owner decides to finally sell or move in.

High-Yield Savings Account

If you don’t have the resources to put into the aforementioned retirement investment options, then at least consider creating a high-yield savings account. These savings accounts offer investors a higher interest percentage than their lower-yield counterparts. 

While an IRA or 401K is usually a better option, a high-yield savings account can still generate a good amount of money, provided that the investor leaves the account alone and doesn’t dip into it whenever they need extra money.

It’s important to plan for your retirement. The sooner you start saving, the better off you’ll be in your golden years. All of these options can help to ensure a safe and comfortable future.