Because you were a wise, financial savvy twenty something you started preparing for retirement at an early age. Hence, 20 or 30 years later, you already have a good sum for your emergency fund and retirement fund. You’d have probably invested on mutual funds and bought life insurance.
Being financially prepared, you might already be thinking of retiring early. But hold off your horses.
Before you finally leave your day job in your 40s and 50s, consider making these investments to bulk up your early retirement fund.
If you’ve already invested in mutual funds in the past, you may already have an idea how stocks work. And if you had been a risk-taker, you may have already bought some low-cost stocks. It’s time to level up your investments and take more risks. Consult a professional stockbroker to discuss the best strategy to do well in the stock market.
Looking for something huge and secure? Look into investments regulated by the government like Retail Treasury Bonds (RTBs). These are government securities shared with individual investors to gain more state income. Because RTBs are bonds, investments made here have a set maturity date, which guarantees your earnings and provides financial security like no other.
If you’ve already tried mutual funds, you might want to step up your game by investing in other kinds of financial funds. Different companies offer a variety of investment funds to suit your financial goals. FWD Insurance, for example, has a good roster of funds that you can choose from. There are even dollar-denominated funds that you can look into. (See: Fund Valuation.)
Now that you are in your 40s or 50s, think about starting your own business. Because of the wide array of businesses to choose from, be sure to invest in something that you are really passionate about.
Some businesses start simply as profitable hobbies, but they later become legitimate sources of income—especially for people who want to opt for early retirement.
Real estate is a good investment but remember, it’s not going to be easy. You’ll also have to do a lot of legwork before you can actually turn it into an income source: construction, renting out, repairs, and maintenance. If you are responsible enough to do all of these, then real estate may just be the right investment for you at this age.
Depending on your target retirement age, these investments can be key to retiring early. If you are only a few years away from retirement, this may be your last hurrah to beef up your retirement savings. So, utilize your remaining work years and consider adding these investments in your 40s and 50s.