Funding Your Retirement: Financial Vehicles to Get You There
For the vast majority, investments into a 401K, IRA, and high-yield savings account is a way to hedge their bets as they move toward retirement. These provide (somewhat) safe financial vehicles ready for when they reach their mid-60s — options nearly everyone can explore.
But what if you’re bullish with financial independence? What if you’re adamant about another tech bubble or housing collapse?
Time in the market outperforms timing the market. But, what if you could inject more capital now to show even better returns through compounding? This article explores financial vehicles that may be the items to get when you’ve set a clear financial path to retirement.
Playing Earnings & Gossip
Swings in the markets create opportunity whether it’s going up or down.
Playing Earnings
Earnings create high volatility in the markets with many opportunities for investment plays:
- Earnings run-up and sell before ER
- Short-term options call/ put pre or post ER
- Bearish buy-ins post ER dips
Tools like Stock Earnings present an easy-to-understand feed of which companies are posting earnings. This allows a savvy investor to play into these opportunities with added data. Tools like this also provide screeners and backtesting to discover and experiment with earnings plays, too.
Playing Gossip
There’s also the idea of “Buy the rumor, sell the news” noting the wild ups and downs caused by reporting and “shakeups” at a business. Notable examples are an influence from the POTUS tweets, moments after a CEO leaves, or whistleblower details from higher-ups.
These disruptive moments create wild swings providing new entry-points for bullish investors during dips. Or, incredible options trades for bearish traders.
Following industry reports and keeping up with the news is the fuel for this financial vehicle.
Income Property & Sharing Economy
One could explore income property as their retirement vehicle:
- Flipping
- Owning & renting
- Owning & vacation rentals
Great capital, credit scores, and knowledge of the housing market creates this opportunity. Though, one could explore it by holding property when downsizing in preparation for retirement — renting the old home to cover new expenses.
One may also invest indirectly through REITs, or real estate investment trusts. This provides market coverage without the headaches and hassle of owning property. It also provides exposure to several sections including commercial property, housing, senior housing, and vacation properties.
REITs rise with housing expansion while paying hefty dividends. All investing platforms provide access to publicly traded REITs. Or, one could explore similar options through services like Fundrise, Realty Mogul, or Realty Shares.
Your Education
The retirement window is set to grow — it’s already extended 4-months in 2018 alone. This is placing many individuals into a tough situation where they’ll need to work a few more years before retirement.
The job market is already tough, and competition from the college educated will make even entry-level jobs difficult to secure for aging individuals looking to “ride out” until retirement.
Continuing education is a key component and investment for your retirement.
Consider:
- Workshops
- Online certifications
- Returning to college
This provides a hedge allowing you to explore part-time options pairing with the extra years your investment portfolio grows. And, it can provide the needed education to expand your skills and experience into lush gigs or entrepreneurial ventures you’ve always had on the backburner.
Time is On Your Side
Time provides the greatest returns whether you’re 40-years from retirement or looking in the pre-planning stages. What you do today creates substantial opportunities for your retirement goals by way of compounding earnings and golden opportunities.
Which financial vehicles will you choose to get yourself there?
