10 Steps To Getting On The Right Track To Retiring Well

via Self Directed Club

Gaining traction in preparing for retirement can sometimes seem daunting. The best way to get ahead is to tackle it in small, easy steps.


Whether you haven’t started saving for retirement yet, or can see the end of your working years on the horizon and need to catch up, the following steps will help you get on the right track, and stay moving in the right direction for a comfortable retirement…

1. Start Investing Consistently

Warren Buffett’s mentor, Benjamin Graham, was largely so successful due to his discipline to consistently investing. Don’t worry about timing the market. It will all balance out, if you invest consistently month after month, and year after year. Commit a fixed number or percentage of each paycheck to invest, and stick with it.

2. Define Your Priorities

Knowing your priorities in investing can help you choose the investments that will best deliver what you really want. For savvy investors this includes; minimizing taxes, generating income, and preserving wealth.

3. Invest for Passive Income

Be sure that your investments can deliver truly passive income. You never know when you’ll have to stop working. Be sure you can keep the money flowing in, no matter what.

4. Choose Safer Investments

One of the biggest dangers today is that so many are investing so much of their nest eggs in investments which offer virtually no downside protection. Publicly traded stocks are a classic example of this. Land and rental homes can be a much safer alternative.

5. Use 1031 Exchanges

A 1031 exchange can be used to defer taxes on capital gains. Instead of handing over double digits to the IRS on the sale of an asset, you get to keep reinvesting that money to snowball your income and nest egg.

6. Use Tax Protected Savings & Investment Accounts

401ks, IRAs, HSAs, and ESAs are all types of investment and savings accounts which can help lower your tax exposure each year. Maximize those contributions, and earn a return on money you’d otherwise be throwing away to Uncle Sam.

7. Use Self-Directed IRAs

Switch your retirement accounts to self-directed versions which give you more investment options, and control over where your retirement fund is invested.

8. Review Your Performance Regularly

Pay attention to your investments. Make sure that performance is headed in the right direction. Plan new moves for the year ahead.

9. Restructure Portfolios

You may hold some investments in your retirement portfolio for a long time. However, you will also want to regularly restructure your asset mix, the geographic locations you have properties in, and add new assets which have a better outlook than some which may have already reached their peak.

10. Ditch Bad Debt, Get Good Leverage

Bad debt is a liability which eats up income which could be used to invest, or could go further to fueling your lifestyle. Think auto loans, credit card bills, and your house payment. In contrast; non-recourse loans can be paired with your retirement account to speed up your income and wealth growth, without personally guaranteeing any debt repayment.
Call Self Directed Club today, and get help in making the next step towards a great retirement…