Disclaimer: This article is for general illustrative purposes and/or informational purposes only. It is not meant to serve as investment advice.
Will your retirement savings be enough for you to lead a comfortable life? If you’ve ever wondered how long your retirement savings will last, you aren’t alone.
You have more options today than ever before, and likely plenty of expenses. Learn the ins and outs of saving for retirement and ways to make your retirement savings last even longer. Discover the power of a tax-efficient crypto IRA and how
you can empower your retirement investment strategy.
What Are Some Common Risks When Saving for Retirement?
With so many unknowns out there, saving for retirement can feel overwhelming, if not almost impossible. From inflation, to uncertain or changing government policies, to low-interest rates, to longevity risk, and the more random, personal events
like unexpected medical bills or home repairs, your retirement savings could be chipped away.
Even now, most retirement savings accounts carry risk. But, if you tackle these problems head-on by developing investments and optimizing your spending habits, you could enable your retirement savings to stretch further and last longer.
The most viable way to account for some of these risks is to develop investments and spending habits that make your retirement savings last longer. The answer may lie somewhere you hadn’t thought to look: cryptocurrency tokens.
Cryptocurrency tokens are a great option for generating additional returns within your Individual Retirement Account (IRA). Apart from being a popular, highly-valued digital asset, crypto tokens serve as a great hedge against the equity markets
(which are at all-time highs). Investing in crypto through your IRA not only offers diversification benefits, but makes you eligible for several tax benefits (saving you money as they appreciate). Let’s discuss a few other ways you can help
your retirement income last longer.
Tips To Help Your Money Last Through Retirement
Preparing for what’s ahead may feel impossible, but there are several options to better make your money work for you. Here are a few tips you can use to ensure you never have to face financial hardship after your retirement:
Live a Healthy Lifestyle, Starting When You’re Young
While the connection might not seem so obvious, your health, especially at an older age, is closely connected to your finances. Getting older means you’re more likely to suffer from naturally expected illnesses, which will affect your body more
significantly than they used to. For example, a fall could mean a trip to the hospital, when 30 years ago, it was little more than an embarrassment.
Healthcare costs from joint replacement surgeries to regular prescription medication make a dent in monthly pension funds. Eating well, taking good care of your mental and physical health, and having regular medical checkups go a long way to
safeguard the state of your health and to catch any potential small issues before they turn into something much bigger — and more costly.
Plan For Inflation
Don’t let inflation thwart your retirement plans. Inflation, or the rising costs of everything from goods to services, hit a 40-year high in the U.S. at the end of February 2022 with no signs of stopping anytime soon. Gas prices, food, and rent
Experts recommend looking for ways to grow your money at a rate that is at least equal to the rate of inflation. Lower rates mean you lose purchasing power, making your money less valuable in terms of what it can buy and leaving you without the
comfortable retirement you had planned on.
Diversified investment options such as cryptocurrency and digital assets, treasury inflation-protected securities (TIPS), and real estate can help you grow your money at a rate consistent or above the inflation rate.
Have a Retirement Spending Plan
Start now. No matter what your age, you need a plan. If you haven’t already, experts recommend paying off larger loans, like school or auto loans, and credit card debt first. The idea is that by knocking out those money-draining bills, you’ll
free up the funds you need to set up an emergency fund.
If the worst should happen: a job loss, medical issue, or home emergency, an emergency fund gives you a way to pay for those things without resorting to tacking on more credit card debt (and the interest rates that go with them). Experts agree
a good emergency fund should cover three to six months of your expenses.
With those debts paid off and an emergency fund set up, you’ll have bandwidth to dig into your retirement goals. Estimate how much you wish to spend annually. What do you need to live well?
Most people follow the 4% rule. Simply put, add up your total investments and withdraw 4% of your retirement nest egg the first year. In the years to come, adjust for inflation, before withdrawing your allotment.
Consider Working Longer
It’s not easy to take on an extra workload when you get older and just don’t have that same spring in your step. However, if you want a relaxing retirement, it could help to extend your work life by 2-3 years. You will earn a little more through
wages, and your retirement portfolio will have some extra time to grow.
Some people also take advantage of side hustles to make more money. Pick a job you genuinely wish to do, whether it’s freelance writing, working for a ride-sharing platform, or selling your crafts. Capitalizing on your hobbies is a great way
to earn a bit extra while enjoying yourself.
Invest in Indexes
Escape the time suck of determining what individual stocks are worthwhile by investing in indexes.Better yet, if you are looking to invest in indexes, you don’t need to get a money manager or an advisor. Think of it as a more passive investment
strategy, allowing you to bypass the associated fees and related expenses of an actively managed strategy.
Instead of having an investment manager maneuver your investments in a changing list of securities, you’ll focus on a specific list of securities. In other words: you’ll have to pay close attention to the S&P 500 funds, or the top 500 companies
in the U.S. stock market.
These indexes aren’t capable of direct trading and typically offer lower fees than those of active funds, and may have restrictions or limitations. But, you can invest in these diversified stocks with less risk, and enjoy other perks like automatic
investments and tax-efficiency compared to other investments.
Invest in a Tax-Efficient Way
Some accounts have different types of tax treatments. Savvy investors believe that IRA’s provide real tax benefits. In tax-deferred accounts, taxes are only levied when withdrawals are made. Money in tax-deferred accounts compounds quicker than
money in taxable accounts. That’s where cryptocurrencies within an IRA fit in.
Cryptocurrencies within an IRA benefit from the same tax breaks as traditional retirement investments. However, crypto experts believe this type of investment offers up a more decentralized, more upside path forward. Dorado’s IRA combines investing
freedom with tax-efficiency.
Buy Your Home as Soon as Possible
Home prices in the U.S have constantly risen for 60 years. If you buy a home when you are young, you have the option to borrow against the house with a home equity loan or sell the house if you need to.
Housing prices also generally rise in line with inflation, so the risk for losing purchasing power over long periods is mitigated. Buying a house earlier in life also lets you avoid mortgage payments later in life when you may not be working
as much or even at all. Paying the mortgage on a house after your retirement can be a big liability that cripples your finances.
Revolutionized Retirement Savings With Dorado
Retirement planning is not easy. There are many variables to consider, and the future is uncertain. There will always be contingencies like significant health expenses, property repairs, and lifestyle changes. However, retirement planning is
a tool that helps you manage risk effectively and achieve your goals, whether financial or otherwise.
When it comes to your retirement savings, you can’t afford to live in the past. Old-school methods, like traditional IRAs, fall prey to inflation. The future is digital. Your IRA could be better protected against inflation and irresponsible monetary
policies, with a Dorado IRA.
Thanks to the Dorado IRA, you can access hundreds of cryptocurrencies, earn up to 20% APY on your tokens, and keep your assets better secured. As a true hedge against inflation, Dorado provides a simple way to invest in your future, while saving
up to 37% in taxes on your crypto gains as part of a comprehensive retirement plan you can live with. Open an account today.
Get started with Dorado today here, or explore our blog for more helpful info about saving for retirement.