If you are wondering about ways to invest outside of your company’s retirement plan, you are taking significant steps towards securing financial stability for your future.
1. Consider putting money into a traditional or Roth IRA
An IRA (individual retirement account) is a financial tool that allows you to save for your retirement independently from your job. It should be your top choice for investing beyond your employer’s retirement plan.
For those who may be curious, your Fresno financial advisor will discuss how it is possible to contribute funds to both a traditional or Roth IRA as well as a 401(k) through your employer. The maximum amount that can be invested in IRAs for 2024 is $7,000 ($8,000 for individuals aged 50 or older).
Step 2: Set up a brokerage account
Have you reached the maximum contribution limit for your 401(k)? Have you also maxed out your IRA? Does this indicate that you have completed all your retirement savings? Don’t jump to conclusions too quickly!
Although it may not be ideal, investing in a brokerage is still a better option than simply stashing your money away. Below are some key benefits of making investments through a brokerage:
No mandatory distributions (RMDs): Unlike a 401(k) or traditional IRA, there is no requirement to start withdrawing funds once you reach a certain age.
No income restrictions: Regardless of your income level, you are able to invest in this account without limitations from the IRS.
Unlimited contribution opportunities: There are no limits on how much you can invest in this account.
3. Purchase property
Aside from investing in the stock market, certain individuals opt to invest in real estate as well. The advantage of real estate is that the majority of properties tend to appreciate in worth over time and can offer a relatively steady stream of rental earnings.
If you believe that you can quickly create your own real estate dynasty by simply watching a few renovation shows or TikTok videos, you will be in for a harsh reality check. The process of purchasing and handling rental properties requires a significant amount of time, finances, patience, and diligence, so it is crucial to fully understand what you are getting into before jumping in.
Conclusion
Determining whether you can truly afford a particular purchase is a critical step in making wise financial decisions. Your financial advisor Fresno, Ca understands that by understanding your financial situation, assessing your income and expenses, considering your financial goals, and creating a budget, you can confidently evaluate whether a purchase aligns with your overall financial well-being.
We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!
Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser. The commentary on this website reflects the personal opinions, viewpoints, and analyses of the author, Soutas Financial, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security, or any security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Foundations deems reliable any statistical data or information obtained from or prepared by third party sources that is included in any commentary, but in no way guarantees its accuracy or completeness.
