If you run your own business or are self-employed, your main goal at first will likely be to start making a profit as soon as possible. It can take a few years to do so; in fact, most businesses don’t expect to see a profit for the first three years. It could be less time if you’re self-employed though, for two reasons. Firstly, you probably won’t have to make a sizable investment like a business with its own premises. Plus, your overheads are significantly lower than a business. Once you start to profit, planning for your financial future, including retirement, can sometimes get lost in the excitement of spending some money on yourself now.
Don’t let that happen. These tips can help you stay on the right track.
Pensions and retirement
It’s never too early to start planning for your financial future and making provisions to support yourself in retirement. Even if you love working and plan to carry on as long as possible, you can’t know for sure how mentally or physically able you will be to do so. Or you might simply change your mind and not want to retire after all.
By starting young, you also have the option to retire early and spend some time seeing the world or making another dream come true. Paying into a pension is a good way to enjoy a comfortable retirement.
Choose your plan carefully as there could be any number of variables in different plans. One could offer higher returns but more limited access, and vice versa. The best thing to do is discuss what you need from your pension with a qualified financial adviser. This professional can give you impartial advice on the best option for you.
For your financial future: Reverse mortgage in retirement
Financial freedom is something you may take for granted while working but miss when your income gets cut during retirement. To reclaim some of that freedom, a reverse mortgage is an excellent solution.
To qualify, all you have to do is be 62 years of age or older, own your own home, and agree to continue living in that home full-time while the loan is active. Finding out how much you can borrow is easy to do with a reverse mortgage calculator.
Then you can set up terms allowing you to withdraw the funds in monthly installments, through a line of credit, or in one large lump sum. The first option is particularly useful if you need help paying ongoing bills, such as monthly utilities. Only when you leave the property do you have to repay the money borrowed in full.
For your financial future: Invest wisely now
Making some smart stock market investments today can provide you with a good return later. This statement is especially true if you go for reasonably secure shares that will steadily increase in value. You can hire a broker to do all your trading, or take advantage of online services that use robo-advisors. These artificial intelligence bots can manage all your basic investment needs.
And, with some companies, you can also talk to a human adviser for more complex needs. Have a look at what these companies offer to see if they have plans that would suit you, for example, the Betterment IRA.
Insurance types and which one is best
Life insurance differs from most other types of insurance, such as house, car, or pet. Instead of the monthly premiums being an expense you don’t benefit from unless you have a claim, life insurance policies usually act as savings investments that you can cash out later. If you had the misfortune of having to file a life insurance claim, it’s best to talk to a life insurance attorney, as even the slightest mistake can result in a denied claim.
When it comes to choosing an insurance policy, check what a policy offers for a return, and the sickness and eligible death benefits for you and your family. For instance, some policies guarantee a pay out what you’ve paid in. For others, you may get less than what was paid in.
Starting a business when you’re a young entrepreneur is exciting, rewarding and, well, a lot of hard work! If you aren’t already planning for your financial future, or are putting it off, start now with My Wealth Solutions or another knowledgeable financial adviser for a comfortable retirement.