We work all of our lives and dream about the day we can retire. But what is the best retirement fund, and is there a safe investment for retirement or supplementing our income?
Even with all of the hard work we put in over the years, the retirement we saved just isn’t enough. Or maybe there wasn’t any money to save. Is social security going to be enough?
I thought about this and have come up with information on the best retirement fund and an alternative for a safe investment.
You Ask, What is the Best Retirement Fund?
Is retirement in your future? The job I retired from, which was nursing, didn’t offer a pension, but they did have a 401K, and one offered a 401B. Still, the amount of money I could afford to put away was not much.
First, I will talk about retirement funds and discuss an alternative to staying in the workforce. I have some ideas — things I have done to boost my retirement and make my life easier.
Types of Retirement Funds
401(K)– A 401(K)
A 401K is a retirement savings that a company offers. The employer matches your contributions, so it makes sense to contribute as much as possible. If you are lucky enough to get a match, you should take advantage of it. You also get a tax break when you contribute.
Each account is different, but the basic plan is to take money out of a paycheck and put it into a retirement fund, and the company matches the amount from 3%-6%. If I take $25 out of my paycheck every two weeks or every month, the company will put into my account 0.75-$1.50 each time you contribute.
It doesn’t sound like much, but it is free money, and it does add up.
The contribution is tax-free until taken out, at which time the government applies taxes.
Usually, the money has to stay in the retirement fund until the employee is invested in the company; in other words, the company requires an employee to work for them for 5-10 years before you can move the money out.
This type of retirement fund is also known as a profit-sharing plan. It works the same way as the 401(K), except it is usually only available to employees working for nonprofit organizations.
You can put money into an account as much and as often as you like, but you must be employed full-time.
There is no matching program, so you won’t get anything back if you don’t receive anything from the employer. In other words, you need to keep putting money into the plan.
If you leave the organization, the money stays in the plan until you reach the vesting period. You can’t move it out without paying taxes.
Individual Retirement Accounts (IRAs)
An IRA is a personal retirement account.
When you open an IRA, you deposit money into the account, and it grows tax-deferred.
Your money earns income tax-free until you withdraw it out of the account.
Your employer offers a retirement plan such as this one if they don’t have a 401(K) or a 403(B). There is no match of funds.
A Roth IRA is similar to a traditional IRA. However, instead of having tax-deferred growth, the money goes directly into the account and the government taxes it when you take it out.
You pay taxes now, but you do not owe any taxes on the earnings when you retire.
These are 4 of the more specific types of retirement funds you can have to save money for retirement.
With this in mind, it is tough to contribute to any retirement fund with the cost of inflation today.
Safe Retirement Investments
Let’s say there is a bit of money put away into a retirement fund, but it is nowhere near what most need for retirement. The next thing to look at is a safe investment.
First, Let me say that there is not a safe investment. Trading stocks to increase an income is always risky if the market drops.
A significant stock drop happened during the stock market crash on October 24, 1929, which led to the great depression.
Most do not remember this depression. My mom used to tell me stories about how she was a little girl, and they did not have food for the table. She said if they did not live on a farm and grow their food, they would not have made it through without starving.
Many say this will never happen again, and I agree with them, but we face far greater problems than the great depression.
Many people do not make enough money to support their families. And our children are tempted with the desire for many brand name products because their friends have them. We, as parents, want to give them a good life, but we do not have the means to do so.
But anyway, we are talking about retirement here and how to survive when the funds have not grown to the level needed to support not working.
What Is The Best Retirement Fund And Why Do You Need It?
Today, the statistics say a person will need 1.8 million in a retirement fund for 30 years of retirement.
How many of us have this kind of money? I know I do not!
At age 61, stomping those concrete floors working in the ER wore me out. My body was tired, and working full time to support myself was not a good option.
Many people are working into their 70s today, but their bodies do not support the same strenuous work they have done in the past.
The World Health Organization says:
Globally, life expectancy has increased by more than 6 years between 2000 and 2019 – from 66.8 years in 2000 to 73.4 years in 2019.
Now, this doesn’t sound like very long when I am 65, but it is a long time to find the money to live when one can’t work.
They say Social security will be around until 2034. But who knows what will happen after that? If social security goes down the drain, then the only other source of retirement income is your own savings.
So, where does that leave us?
We must save and invest wisely because a retirement fund is essential.
But what can one do if a retirement fund is not an option because retirement age is sneaking upon them?
What Is The Alternative To The Best Retirement Fund?
We talked about a safe investment and how no investment is safe, so what is a person to do.
Well, there are alternatives. If working outside the home is not physically possible because of health, then why not work at home?
Working at home is exactly what I chose to do to supplement my income. I don’t have to drive to work, nor do I have to answer to someone else. I simply get out of bed, have my coffee, and work.
Every morning I go work out at the gym, and some days I play some pickleball, but the point is I set my schedule. Not to mention, I even take my computer with me on vacation and schedule my time around fun activities.
Where Can Someone Find A Job Like This?
The alternative which is a safe investment is a safe bet. It is known as Affiliate Marketing. So you say, what the heck is that?
What Is Affiliate Marketing?
Affiliate marketing is a way to make money online without selling anything. You just sign up for affiliate programs and promote products.
You may think this sounds easy, but it takes a lot of hard work and research, so you see, it is not a fly-by-night business. However, it is a legit work-from-home business.
So retirement is approaching, and it looks like working past the age of 70 is the only option. But the prospect of affiliate marketing has now been introduced. Start now before you retire and work on your online business a bit each day to bring in the money you need to supplement social security.
A scenario just like this one is what I did. A couple of years before I retired, my online business came into play, and it worked out well.
Where To Get Training?
To begin with, let me clarify something. Affiliate Marketing is an online business for anyone, not just for the young but also for the young at heart. I knew nothing about the internet and marketing until I took training and had support.
So if I can do this, I know you can, especially with the right training and mentorship. Which brings us to “The Laura Method.” I won’t go into detail about the training because when you click on the video you saw in the middle of this article, you will get a vast amount of information.
I will say that with “The Laura Method,” I am with you all the way in training, and you can reach me anytime you need.
With that said, Affiliate Marketing is a safe investment alternative to working well into your 70s.
6 thoughts on “What Is The Best Retirement Fund And A Safe Investment?”
It’s rather a pleasant surprise reading your post here or blog whatever. Indeed there are retirement plans for companies401K and non-profit companies 403B and the companies who do not both of these the Individual Retirement Acc or IRA. Of course the most common the social security. However, what jolted me out of my seat is the Wealthy Affiliate online business. Indeed to do the wealthy affiliate is the best alternative against all the traditional retirement plans there are in the outside world. Billy Gates said ‘if your business is not on the internet your business will soon be out of business.’ How prophetic he was. Even our retirement plan has got a real twist, we became empowered of our future with solid confidence because it is up in our hands, not any ones’ Thank you for this enlightening blog.
There are so many ways to save for retirement but there isn’t enough money coming in to put away. We have to empower ourselves to be responsible and find a way to bring in more money. Long after Social security and completed work days it will ultimately be up to us to find a way. WA offers a way to fulfill our dreams of retirement.
Thanks for this informative post, having a retirement fund is important but I think I like the sound of a lifetime investment which you have introduced in this article, wealthy affiliate does fit to this achievement and I can say that for sure because I’m now a premium member and it comes with a lot of benefits and promises to be awesome.
You are welcome. Every business puts out what we put in but isn’t it incredible to have a way to improve our lives. Especially after we retire and have so many things we want to do?
Great article. I am 29 but it helps to get me thinking about things that will come up in the future. I hope I make enough money in the next 20 or 30 years to have me set for life for the most part. I am doing Wealthy affiliate now. Like you were saying, minimum wage jobs might never be enough. I bought the premium membership and got a lot of value from it so far. But results may vary because each person is different.
I hope I don’t have to worry about a retirement fund. I just want to have so much money that it doesn’t matter!
Thanks again for the article. Take care.
Charles, At the young age of 29 is when to start thinking about retirement. I am so happy you are a member of WA. Keep going and be persistent and you will have a great retirement. Affiliate Marketing is only going to grow from here.