Making sure that you have enough funds for your retirement is something that takes time and patience. There is no quick-fix solution for this, but that isn’t to say you can’t have multiple strategies working for you to reach your goal. When I sat down and worked through my own strategy for my retirement goal, I adopted a model that incorporated short-term, middle-term and long-term investments. My strategy allows me to grow my nest egg and makes sure I am not relying solely on one type of investment to grow my wealth.
Don’t Diversify too Early
The moment people start to talk investment strategies, there are a lot of opinions that fly around. Sooner or later, someone will inevitably start to talk about diversification. It’s at this point I will usually have to stop my eyes from rolling into the back of my head. It’s not that I am opposed to diversifying, it’s that I think it is a strategy that should be incorporated later in an investor’s cycle rather than right up-front. If you spread your capital too thin across multiple avenues too early, then it will simply take you longer to generate any meaningful amount of return on your investments – it’s what I call premature di-worsification.
Consider Safe Stock Investment to create your deposit
When I first started on my investor journey, I jumped straight into the stock market believing that I would spend an hour or two a day and earn a killing. I quickly found that I needed to dedicate somewhere closer to six or seven hours a day to get the return I wanted, not to mention the risk I put my earnings under while doing so. I realised that there was a safer way I could get a good return on my capital by investing in share index funds through a Vanguard account. The return on these investments is 9%, and if your capital is left for ten years, it will more than double in value. This allows you to create the deposit necessary to leverage into property to turbo charge your growth.
Invest in Property for the Long-Term
One of the lessons I have learnt from being an investor is to focus on the long-term eg 10-20 years plus. This is why I am a strong believer in property as the best and safest long-term investment during the growth phase. There is no other safe type of leveraged investment that provides you with the level of cash invested returns that property does. With a little bit of research and engagement with a property investment advisor and an investment savvy finance broker, you can find the best outcome for your capital and set yourself up with a self-perpetuating investment that will set you up well beyond your retirement.
No matter which path you take with your investment strategy, the one element that you need to ensure is that your capital will be worth something when you need it most. The longer you give yourself, the better off you will be when it is time for you to cash out and fund your retirement. It’s all about giving yourself plenty of TLC – combining time with leverage and the magic of compounding returns. Playing the long game is the key.
