At some point in our lives, we’ll find the need to save for our future. In this day and age, nothing is certain. We don’t know what lies ahead, we can be laid off with our jobs, a family member might get sick and needs hospitalization, we are not getting any younger and we basically need money – lots of it, to enjoy a happy retirement.
However, given the inflation and the other entire complex economic jargon thrown around Wall Street, our money may not be of the same value once retirement days come.
The fact of the matter is money will depreciate its value over time. Acquiring wealth isn’t enough, the value of preserving wealth is of equal importance.
It doesn’t matter whether you’re planning for retirement or you just want to preserve the value of your money. What follow below are not detailed and specific explanations on investment programs but common principles of preserving the value of your assets.
Buy yourself a Home
The first and probably the most important investment that you’ll need to consider is buying a house. It won’t need a financial consultant to explain the value of having a house you can call yours.
Real properties like houses have a stable value. They might be a time when the value depreciates just like when the recession hit America but the casual home owners – the ones who own and paid for their homes didn’t mind it.
Your home is a fixed asset that you’ll need for as long as you live. Ironically, although it’s value can be affected by certain economic situations, it will remain valuable to anyone who lives in it.
Investing in Rental Properties
Say, you received your retirement payment of $250,000, you’re considering investing your money.
Again, I reiterate the value of real estate properties. Stock markets? It’s for the professionals, leave it to them.
Buy a piece of land, improve it and build a house on it then rent it. It’s not as easy as it looks like, there are a lot of things to consider like taxes and liens.
But once you’ve constructed a rental property, you’re off to receiving continuous stream of residual income. In real estate, inflation is your friend. Inflation increases the value of land properties and in no time, the fair market value of your property will double, triple or even quadruple.
Stock markets are the wise men’s casinos.
The value of being insured isn’t realized unless something bad happens or you’ve reached the date of maturity.
There are plenty of insurance programs you can choose for health cares, educational plans for your kids and well, memorial plans. Insurance also offers smaller risk as compared to other long-term investments.
Much can be said about insurance but the bottom line is it gives you security come what may and security my friends, is nothing but the whole essence of wealth preservation.