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The word retirement is a scary one, especially for those who are still struggling with everyday financial obligations and cannot start to imagine investing a small portion of their earnings on a retirement plan. Even if this isn’t the case, it is perfectly comprehensible that most common, untrained individuals find it hard to determine which investments provide the most lucrative source of retirement income. This article is intended to cover everything you should know about securing a comfortable retirement whilst exploring a few of the most lucrative sources of income.
The first aspect that should be perfectly clear to almost everyone is that these days most people can’t rely exclusively on a company pension plan or social security to enjoy a comfortable retirement. Experts in the matter predict that most individuals will need at least 70% of their annual pre-retirement income to manage a comfortable retirement.
Obviously the percentage could drift both ways depending on a number of financial obligations like health problems, education expenses, family dependents and housing costs. Unfortunately if you want to take a luxurious cruise around the world or maybe carry out a few much needed home improvements, you will need at least 100% of your income. Please take note that when planning retirement, it is imperative to keep in mind health care expenses since they are most likely to increase. So if you still don’t boast some sort of health coverage the best time to start is now.
Most people rely on some sort of pension or nest egg savings for retirement. To complement these resources you should look into some solid investment opportunities that will provide an extra source of spending money to overcome superfluous expenses. A good starting point would be to create a long term investment portfolio of stocks and bonds that could be either sold for a profit or used as a source of revenue. Owning real estate is never a bad idea, especially if you don’t want to spend portions of your retirement on housing expenses. It is a proven fact that people who invested strong in real estate have managed to secure a comfortable source of income together with complete financial freedom.
Take care, however, to delineate a complete retirement plan before it is too late. Waiting until the last minute could leave you with a massive headache and little or no money to enjoy during the best years of your life.