To ensure that you’ll have a comfortable retirement, you must plan your finances well. When it comes to your finances, making sure that you’ll have reliable income coming in is essential. Starting with some of these ideas can help you figure how to have that reliable income coming in.
Buy an Annuity
As you’re thinking about your retirement income, buying an annuity can be a good option for you. Typically, it’s best to start considering this as an option after you’ve already maxed out other tax-advantaged retirement investments. While annuities can be a positive way to ensure that you have the income you need, they tend to charge higher fees.
Often, there will be an upfront fee of up to 10% of the total investment. But on the other end, annuities are unique in that they allow you to put a large amount of cash away while deferring taxes.
Buy Rental Properties
In addition to thinking about an annuity, you might also consider buying rental properties. Managing multiple rental properties can give you meaningful income with relatively minimal effort. But as you think about the types of rental properties you want to invest in, you should be strategic.
You should think of your properties like a business and create a plan complete with your goals. Make sure that you figure out the goal amount of income you are hoping to generate from your rental properties and plan accordingly. For example, if your main priority with these rental properties is simply to have consistent income, you may consider investing in college housing. Because there will always be students who are looking for housing around the university, you’ll likely always have the apartment filled with tenants.
If you’re interested in purchasing rental properties, give us a call at 817-330-9235. We can help you find properties that fit your plan.
Develop Great Budgeting
Although this may not be one of the things that immediately come to mind when thinking about the best ways to ensure you’ll have consistent streams of retirement income, developing great budgeting habits will help you make the most of the income sources you do have.
Think ahead to the different expenses that you imagine will change in retirement and plan accordingly to ensure that you’ll be able to comfortably allocate your funds throughout your retirement.
Planning for retirement is difficult. Planning your finances can be even trickier. Starting with these ideas can help you figure out the best way to ensure you are financially secure in your retirement.