As a senior, it’s important to have wealth building strategies in place that will enable you to be comfortable in retirement with investment returns and other supplemental income. Without a well-balanced, wealth building strategy, retirement can be extremely challenging if you lack financial resources and must rely solely on Social Security and a pension.
According to Blackrock.com “A retirement portfolio can create a more stable basis for your future. The returns from your retirement portfolio will supplement your Social Security benefits and can possibly prevent you from having to live on a fixed income.”
Always speak to a professional financial advisor before making investments.
Why Is It Important to Have a Wealth Building Strategy?
No matter what your age, you should have a wealth building strategy. The more effective your strategies are, the more financially independent you will be.
Imagine taking a vacation whenever you want, playing golf, tennis, paying off any debt and visiting your children and grandchildren without sacrificing your quality of life.
The money that you accumulate from your wealth strategies can also help avoid excessive medical debt. There is a profound peace-of-mind knowing that you are financially secure and can cover medical services without going into debt.
A wealth building strategy can help you build a more fulfilling, comfortable, and more enjoyable life. Let’s look at several wealth building options.
Investing in Stocks, Bonds, or Mutual Funds
Depending on your age, investing in stocks, bonds or mutual funds can be an effective wealth building strategy. As a senior, you’ll want your investments to have steady growth, low volatility, dividends and current income.
You could also benefit from investing in bonds. They are considered safe investments. They don’t typically offer high returns, but they do offer steady income and can provide a hedge against the volatility in the stock market. Municipal bonds can offer tax free income and treasury inflation protected securities can provide more income as inflation rises.
“Completely safe investments boast the lowest returns. Certificates of deposit have zero risk of loss. Most bank deposits are insured. Treasury notes, bonds and bills are not insured but are considered very safe investments. Investment grade municipal and corporate bonds have increased risk, and therefore, offer slightly better returns. A short- or intermediate-term investment grade bond fund minimizes the risk of an investor losing money while providing much-needed income. Many companies offer specialized income-producing mutual funds and insurance products such as annuities tailored to the needs of seniors.” (Pocketsense.com)
Investing in Real Estate
The benefits from investing in real estate is the monthly rental income. As far as wealth-building strategies go, investing in real estate is one of the most profitable options to consider. You should include the maintenance costs associated with the property.
Of course, like any other investment, there is always some risk involved. Investing in real estate is all about timing and location. Buying the right property at the right time and selling it for a higher price a few years later can be very lucrative.
Wanting to Start Your Own Business?
Many seniors become bored in retirement and consider starting a business. Starting your own business can provide a renewed sense of purpose along with a new source of income. Since building a business takes time, effort and cash, you need to consider how much time and money you are willing or able to invest into growing the business. After considering all the factors, you may decide retirement and playing golf sounds like a better idea.
Financially, this is risky, but could also be gratifying. You must weigh the pros and cons of starting a new business. Primarily, you need to determine if you can financially afford to have the business fail.
While each of these wealth building strategies are different, they all share one thing in common. Whether you’re investing in stocks, bonds, real estate, a new business or something else as a senior are best for you. These decisions should be discussed with a professional financial advisor to determine if they fit with your goals, risk tolerance and financial means.
Unlock the Money You Need to Build Wealth with MRE Finance
There is an another often overlooked option to raise cash that you can use for any financial investment or whatever you choose. It is called a life settlement. For those over 70 years of age, they can receive cash by selling their life insurance policy. The proceeds can be used to invest, pay off debt or for any other expense.
A life settlement refers to the legal transaction between the life insurance policyholder and a third-party buyer known as a “Settlement Provider” for an upfront cash payment. Life settlement cash payouts are typically higher than a life policy’s cash surrender value but less than the total death benefit of the policy and you no longer pay the premiums.
Overall, the process takes 6-8 weeks for the settlement to finalize with an experienced provider. Timelines can vary based on your life insurance company and the provider receiving the needed documents in a timely fashion.
The experts at MRE Finance believe in helping seniors build wealth through the sale of their policies.
MRE Finance has a FREE online life settlement calculator that can provide you with an estimated value of your life insurance policy within minutes, or you can call their specialists at 1-800-521-0770. Your journey to financial freedom begins as we walk you through the life settlement process with ease!
About MRE Finance LLC
MRE Finance brings over 25 years of experience in the life and viatical settlement industry. Our mission is to educate and provide information to help seniors and those chronically ill live life with dignity and greater financial stability by assisting them in selling their life insurance policy. MRE Finance believes in being transparent with its clients and, above all respecting their privacy.