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4 Ways To Prepare for Retirement

4 Ways To Prepare for Retirement

Retirement is something most people try to avoid thinking about. This seems strange, since retirement should be some of the most blissful and relaxing years in a person’s life.

The problem with retirement is that it takes years and years of financial planning to make sure that relaxation is actually an option. If planned incorrectly, retirement will instead be a miserable time period filled with fruitless job searches and financial stress.

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Luckily, it is never too late to start planning and figuring out what exactly needs to be done. Here are five ways people build steady retirement incomes that allow for safe and secure retirement.

1. Buy real estate

Real estate is an asset that typically goes up in value over time. Sure, there are ebbs and flows, and sometimes real estate will lose value for a few years, but in the long run it has always gone up. It is also expected to continue to do so for the foreseeable future. The world isn’t getting any bigger, and that means that land is becoming increasingly limited.

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Buying real estate for your retirement can be as easy as purchasing a home while you are young, or as complicated as going into a commercial venture with some business partners. Getting a home for yourself while you are young can allow you to stop throwing away money on rent and instead put that money to something you own. As long as you are planning on holding the home for the long haul, it is typically a good idea.

2. Fixed deposits

If you are a little closer to retirement and don’t want to risk your current retirement savings then you should look at something called fixed deposits. These are essentially savings accounts that give higher interest rates. You agree to leave the money in the account for a specified period of time, and the bank will agree to pay a higher interest rate than a typical savings account would get. Fixed deposits are similar to CDs.

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3. Start an IRA

Many people have heard of these and might consider them too complicated to try and set up. In today’s age that couldn’t be further from the truth. You can open up an IRA in a matter of seconds using just about any broker. There are some brokers coming out today called robo-advisors that will essentially make most investing decisions for you based on your current situation.

One of my favorites is called Motif Investing. They allow you to decide what industries you think will do well in the future, and they will find and make the investments for you.

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4. Start an online business

With the way the internet functions today, you can start an online business in just a few minutes. Many people do this because once the business is thriving and they are ready to retire, they can do so, and the business typically continues to thrive with little effort. You can sell physical products, or you can just become an affiliate of a few niche companies and then take a commission every time you refer a customer to them. Many people do this and are able to retire early with a consistent income.

The key to retirement is diversity. Do not rely on a single income source, or you will find yourself in trouble if that single source has issues. Be careful not to rely on the government too much, as policy is always changing, and you never know exactly how much you will really get. Many people believe that social security will take care of them, but current numbers point to a different story.

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Spencer Mecham

Personal Finance Coach, Digital Marketer

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Last Updated on June 25, 2019

5 Books You Must Read if You Want to Be a Millionaire in Your 20’s

5 Books You Must Read if You Want to Be a Millionaire in Your 20’s

Millionaires and billionaires read more than you think. In fact, the likes of Warren Buffet are said to read 1.000 pages a day. As the old saying goes “There’s no smoke without fire”; so, start off with these 5 incredible books!

1. The 48 Laws of Power

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    “If you are unsure of a course of action, do not attempt it. Your doubts and hesitations will infect your execution. Timidity is dangerous: Better to enter with boldness. Any mistakes you commit through audacity are easily corrected with more audacity. Everyone admires the bold; no one honors the timid.”

    On your journey to becoming a millionaire in your 20’s, there will be many people trying to manipulate you into doing what they want. This international bestseller by Robert Greene is the widely read by those in the entertainment industry because of its dog-eat-dog environment. This book is a must-read for anybody who wants to claim power and keep it. it’s a fun read that tells the story of some of the most powerful people in history.

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    An example of a law of power is: Always say less than necessary.

    • When trying to impress, the more you say the more common you look and less in control.
    • Be vague.
    • Powerful people impress and intimidate by saying less.

    2. Influence: The Psychology of Persuasion

    influence-the-psychology-of-persuasion

      “Often we don’t realize that our attitude toward something has been influenced by the number of times we have been exposed to it in the past.”

      This book explains the core strategies people use to influence others using real world examples. Robert Cialdini’s book goes over human quirks like the need to be consistent, and how you can use that in your marketing strategy to make more money. “People’s ability to understand the factors that affect their behaviour is surprisingly poor,” Cialdini says, “which leads to people making poor decisions without realising why.”

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      Cialdini includes real world examples of why people join cults, buy certain jewellery, or give to charity.

      3. Blue Ocean Strategy

      blue-ocean-strategy

        “Value innovation is the cornerstone of blue ocean strategy. We call it value innovation because instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space. Value innovation places equal emphasis on value.”

        This book argues that leading companies don’t succeed by battling competitors in “Red Oceans”, but by creating “Blue Oceans” where they have uncontested market space to grow. It goes over case studies like “Cirque Du Soleil” who created a blue ocean by creating a circus platform that didn’t include animals or more than one act on at once but instead, decided to focus on talented performers and music who created a mystical storyline.

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        4. The Fountainhead

        the-fountainhead

          “A man’s spirit is himself. That entity which is his consciousness. To think, to feel, to judge, to act are functions of the ego.”

          The Fountainhead takes place in the United States, mostly in New York City, during the 1920s and 1930s. Billionaire Mark Cuban named his yacht “Fountainhead” after this book. This classic novel is about the struggles of an innovative architect named Howard Roark and his effort to achieve success on his own terms. Many entrepreneurs are inspired by this book because it depicts how you should be uncompromising when it comes to your vision and your goals. If you follow this way of life, you develop the ability to change the world and creating something unique.

          5. The Compound Effect

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            “Do you know how the casinos make so much money in Vegas? Because they track every table, every winner, every hour. Why do Olympic trainers get paid top dollar? Because they track every workout, every calorie, and every micronutrient for their athletes. All winners are trackers.”

            This book is by Darren Hardy the CEO of Success Magazine, he goes over how it’s the small, seemingly insignificant choices that compound to create success or failure over time. No one has a plan to be broke and fat but that’s what happens when you don’t have a plan and go along the path of least resistance. Hardy argues that you cannot improve something until you measure it and to always take 100 percent responsibility for everything that happens to you.

            So, those are five books you must read if you want to give it a try to become a millionaire in your 20’s. What are the best books you have ever read? Leave a comment and share these life-changing books with your friends to help them become successful like you.

            Featured photo credit: Bill Gates Foundation via businessinsider.com

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