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Would you rather retire rich or retire early?<\/p>\n
Both options sound enticing \u2014 retiring early and having more time to enjoy life without the shackles of work, and retiring with a solid amount of savings that can go toward making your retirement dreams a reality.<\/p>\n
Reddit user david8840 asked members of the r\/Fire subreddit this question: \u201cIf you had a choice between retiring at 40 with a pre-tax retirement income of $125,000 per year, or retiring at 60 with $300,000 per year (in today’s dollars), which would you choose and why?\u201d<\/p>\n
The name of this subreddit \u2014 FIRE \u2014 stands for \u201cFinancial Independence, Retire Early\u201d which is a financial movement that motivates people to aim for financial independence before the traditional retirement age so they can retire early.<\/p>\n
However, many Americans aren\u2019t in a place where they could even consider FIRE as an option. A study from earlier this year by the National Institute on Retirement Security found that 55% of Americans are concerned they can\u2019t reach financial security in retirement.<\/p>\n
If you find yourself stuck on the question or you\u2019re behind on your retirement saving, there are things you can do to safeguard your dreams for your golden years.<\/p>\n
Here\u2019s how you can work, invest and save toward the goal of retiring early and retiring rich as you decide which is the path to take.<\/p>\n
Responses to david8840\u2019s Reddit post were mixed. User ComprehensiveYam said \u201cI\u2019d probably stick it out a bit and go for rich. Having surpassed this level of income already I can say that it\u2019d be tough to go back down the ladder especially given the freedom it gives us.\u201d<\/p>\n
Meanwhile lottadot wrote \u201cIf I could generate $125k\/yr gross off my retirement assets at a 2-3% SWR I’d retire today.\u201d<\/p>\n
Finding the right vehicle for your retirement savings is a great place to start feeling confident in your post-work future.vPersonal finance personalities like Suze Orman have long touted the benefits of tax-advantaged retirement accounts like IRAs.<\/p>\n
There are numerous options out there, including some that can help protect your retirement fund against economic volatility, such as a gold IRA.<\/p>\n
A gold IRA is one option for building up your retirement fund with an inflation-hedging asset.<\/p>\n
Opening a gold IRA with the help of Goldco<\/a> allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA.<\/p>\n With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver<\/a>.<\/p>\n If you\u2019re curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today<\/a>.<\/p>\n If you\u2019re unsure which path to take amid today\u2019s market uncertainty, it might be a good time to connect with a financial advisor<\/a> through Advisor.com.<\/p>\n This online platform connects you with vetted financial advisors best suited to help you develop a plan for your new wealth.<\/p>\n Just answer a few quick questions about yourself and your finances and the platform will match you with an experienced financial professional. You can view their profile, read past client reviews, and schedule an initial consultation for free<\/a> with no obligation to hire.<\/p>\n You can view advisor profiles, read past client reviews, and schedule an initial consultation for free<\/a> with no obligation to hire.<\/p>\n Read more: Rich, young Americans are ditching stocks \u2014 here are the alternative assets they’re banking on instead<\/a><\/strong><\/p>\n Your stock portfolio isn\u2019t the only vehicle that can help you ride into retirement in style. There are alternative investments that can not only be a solid way to save up money for retirement, but they can also provide you with passive income during retirement and supplement your nest egg.<\/p>\n And there are many platforms out there that make alternative investing accessible and simple, so you have a variety to choose from based on your financial goals and personal interests.<\/p>\n For instance, real estate values typically increase over time, even amidst the market\u2019s ebbs and flows. This reliable appreciation makes real estate a trustworthy investment to fund your retirement.<\/p>\n Mogul is a real estate investment platform offering fractional ownership in blue-chip rental properties<\/a>, which gives investors monthly rental income, real-time appreciation and tax benefits \u2014 without the need for a hefty down payment or 3 A.M. tenant calls.<\/p>\n Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide<\/a>, guided by proprietary underwriting and market analytics typically used by large institutions.<\/p>\n Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Every investment is secured by real assets<\/a>, not dependent on the platform\u2019s viability. Each property is held in a standalone Propco LLC, so investors own the property \u2014 not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.<\/p>\n Getting started is a quick and easy process. With a minimum investment of $250, you can sign up for an account and then browse available properties<\/a>. Once you verify your information with their team, you can invest in the properties of your choice in as little as 30 seconds.<\/p>\n Accredited investors should check out First National Realty Partners<\/a>, a company that allows you to invest in necessity-based commercial real estate without having to find the deals yourself.<\/p>\n Through FNRP\u2019s platform, you gain access to properties leased by national brands<\/a> like Whole Foods. And because these properties are rooted in essentials, they\u2019ll stand the test of time even amidst economic volatility.<\/p>\n If real estate isn\u2019t your thing, you can invest in something more creative with a platform like Masterworks<\/a> which allows you to invest in fine art \u2014\u00a0and you don’t need millions to do it.<\/p>\n With Masterworks<\/a>, you can dip your toes into the world of fine art without dropping millions on a painting at an auction. Their investment platform allows you to buy and sell shares of iconic works of art<\/a> \u2014 as in Banksy and Picasso-level iconic \u2014 just as you would stocks.<\/p>\n While cutting down on unnecessary spending to make room for savings and investments is a good tool to build up your wealth before retirement, you also can\u2019t deny that there are things you inevitably have to spend money on.<\/p>\n One way you can start to incorporate savings automatically into your daily spending habits is through Acorns<\/a>.<\/p>\n Acorns is an automated investing app that invests the leftover change from your everyday purchases into a diversified portfolio of ETFs. Acorns automatically rounds up the price of your purchase to the nearest dollar and deposits the difference into a smart investment portfolio for you, allowing you to grow your wealth without even thinking about it.<\/p>\n It takes less than five minutes to sign up \u2013 all you have to do is link your cards and start spending as usual.<\/p>\n Sign up now and you\u2019ll get a bonus $20 investment<\/a>.<\/p>\n