Many Americans have 401ks, IRAs, pensions and other simple retirement accounts. Yet what if that's not enough? It's easy to underestimate how much money you need to retire, and research shows that most people aren't saving enough.
To help you supplement your savings, let's take a look at three creative retirement savings strategies.
Option one: Investing in real estate
Real estate investing is a tried and true tactic when saving for retirement, as the income generated is predictable and real estate prices historically have gone up with remarkable consistency.
If you choose to go this route, there are two options to consider: Buying a second home to serve as a rental "nest egg" for your retirement, or buying a home to live in that has an extra room, basement or apartment for rent. The advent of Airbnb and other digital services has made renting property easier than ever.
KeyPoint Credit Union has a variety of great mortgage options for you to review, along with home equity loans you can use to renovate new or existing rental space.
Option two: Think outside the IRA and 401(k) box
Those who regularly contribute to a 401(k) plan and save or invest wisely may have enough set aside at retirement time, at least for themselves. But what about families with a non-working spouse?
One exception to the standard IRA rules is a "spousal IRA" that allows stay-at-home spouses to establish an account even if they haven’t worked this year. The parameters of this type of IRA are largely influenced by the income and employment status of the working partner.
If you are contributing to a 401(k) plan or IRA and find yourself short of your retirement savings goals at age 50 or more, you may be also eligible for catch-up contributions. This allows you to contribute an additional amount of pretax dollars to your 401(k) or IRA above and beyond the normal yearly limits.
KeyPoint can help you open and manage a new Traditional or Roth IRA account. We also offer additional wealth management solutions to meet your retirement needs.
Option three: Start a side business
Thanks to the "Gig Economy" and the explosion of contract work, the opportunities for starting a side business have never been greater. By identifying a market niche you can fill -- and playing to your own strengths and talents -- you can save extra money for retirement.
Choosing a business account with KeyPoint to help support your side business can help make sure your new venture is a roaring success.
While a 401k or IRA might serve as your main retirement savings vehicle, there are many other smart options for you to explore.
Please don't hesitate to contact KeyPoint for all of your savings and business account needs.