Having the financial freedom to retire early and be able to spend your days as you please is a dream for many, but it is a dream that they think is out of reach. That doesn’t have to be the case. Although retiring early isn’t easy, it is far from impossible, especially if you start saving making some smart investments right now…
Pensions
Obviously, if you want to retire early, the best way to achieve your aim is to invest income or more good pension plans. Pension plans where your employer or the government also contribute are pretty good for maximizing your contributions, but if you plan to retire early, you’ll need to check any pension you invest in can be accessed early if required.
Put Money into Property
Investing in property, although it isn’t a sure-fire way to increase your income significantly, is a still a pretty safe bet and one of the least risky ways to invest your cash right now. The key is to find properties that are selling for less than their value or properties that you can renovate to make more appealing. Often, investing in properties abroad is the best way to make a significant amount of money for retirement because you can buy cheaply and rent out to vacationers for a steady income, but you should always do your research on any given market before you invest in it.
Tax Exempt Bonds
Tax exempt bonds are a great investment for your future financial freedom because they will give you a passive income that is also extremely tax efficient. The most common tax exempt bonds are state and municipal bonds, on which you don’t have to pay federal income tax and these are perhaps your safest bet when going down this route.
Stocks
Investing in the stock market can be pretty daunting for people who have little experience of doing so, but it can give you some of the best returns out there and make retiring really early a real possibility. Of course, it is not without its risks and you will need to pay for some good financial advice before you go down this route. You’ll also need to keep a close eye on your investments, reviewing them every few months to ensure you’re getting the best return on your investments.
U.S. Treasury Bonds
Investing in U.S. Treasury bonds can reap a lot of benefits for people retiring early because bonds are one of the safest investments there is in this country, and they have lots of state-level tax advantages that make them a more efficient way of saving than many others. The only downside is that they have a lower yield, so you should perhaps not use them as your only form of investment.
Over to Peer Lending
Lending your savings to entrepreneurs might not be risk-free, but if you’re sensible and you don’t put all your eggs in one basket, it can yield pretty impressive results over time. Just seek advice before you take the plunge and invest in this new way of lending.