How to Retire Early - Top Tips
- Fixed Deposits in Banks - This is another very popular method of investing for retirement.
Every bank pays out a healthy interest rate on the invested principal, due to which after some years the invested amount multiplies.
If kept for a significant number of years, the little amount invested in fixed deposits could multiply and be a good source for spending the life comfortably after retirement.
One of the better aspects of banks [even in today's credit crunch environment] is that they are a safe house for your money.
You will pay for this safety by being offered a lower interest rate. - The government may offer fixed deposit bonds from 1 year to may be 5 years.
If you are fortunate to live in a country that has a stable economy then a government bond may be worth your consideration, as it is highly unlikely that the government will default on your money.
The government may also offer tax free products, which may also suit your needs. - Real Estate Investing - Most people have paid off the mortgage by the time they reach retirement age.
If they timed buying their property right, which most people will have because of the huge time frames involved circa 25 or 30 years, it is almost certain that their property will have built up significant equity.
This can be a good option for investment.
Many people sell their homes after retirement and buy smaller homes in a more peaceful area.
The money they save is good enough to look after their needs in their post-retirement years.
This is a clever idea if you have not had the opportunity to save for your retirement through a company or personal pension plan.
- Term Insurance Policies - Term insurance policies are set for a fixed period of years, which can be either a short or a long period of time.
The investment is done in the form of premiums after regular intervals of time.
The premiums are collected by the insurance company and the interests are accrued on them.
When the stipulated term is over, the insurance company pays out this amount to the person.
Many people buy term insurance policies to tide them over after their retirement
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