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Being able to retire comfortably is a top concern for many older Americans. A recent AARP survey found that 61% of Americans aged 50+ are worried that they will not have enough savings when they retire.
Social Security, a cornerstone of American retirement ideals, was a central election issue for voters in the recent election, when Donald Trump proclaimed, “Seniors should not pay taxes on Social Security” on Truth Social.
That promise could become reality once Trump takes over the White House in January.
However, those taxes currently help fund the program’s revenue and are crucial for retiree payouts. Removing them would create a significant shortfall, potentially affecting the program’s long-term sustainability. The U.S. Committee for a Responsible Federal Budget (CRFB) estimates Trump’s plans would lead to a 33% cut in benefits by 2035.
Whatever happens during the second Trump administration, Americans will be looking to strengthen their retirement savings to ensure they can comfortably bounce back if the country’s retiree safety net starts to unravel.
Preparing for Social Security’s uncertain future
A recent analysis from the CRFB estimated that if Trump’s proposal was implemented, Social Security’s funds would run out by 2031.
Preparing for any changes to Social Security is a smart move. And with the average monthly SSA payout standing at just $1,862 and the possibility of a further cut, you’ll want to look for other ways to secure your financial future.
But where to start?
With the help of a qualified professional, like those found through WiserAdvisor, you can easily plan when, where, and how you want to retire — and look at your Social Security benefits as an added bonus.
WiserAdvisor has a free online service that helps you find a financial advisor who can co-create a plan to reach your financial goals. Just answer a few questions, and the extensive online database will match you a few vetted advisors based on your answers.
You can view the advisors’ profiles, read past client reviews, and schedule an initial consultation for free with no obligation to hire.
Strategies for a secure retirement
Consistent contributions are a cornerstone of effective retirement planning. By steadily investing, you’re able to benefit from the power of compound returns, too.
You also may want to invest in steady asset classes, which can be more resilient during economic downturns.
Diversify your IRA
By diversifying with both asset classes and account types, you can build a tax-efficient portfolio that accommodates both your current and future needs.
For example, gold and other precious metals can help stabilize your retirement portfolio. With inflation and market volatility in mind, gold has become a popular option for those looking to protect their assets over time.
The reason is straightforward: these precious metals can’t be printed in unlimited quantities by central banks like fiat money. And because their value isn’t tied to any one currency or economy, these metals could provide protection during periods of economic uncertainty.
One way to invest in precious metals that also provides significant tax advantages is with a gold IRA with help of American Hartford Gold. This retirement account can help stabilize your finances by allowing you to invest directly in physical precious metals, rather than stocks and bonds.
One of the country’s most trusted precious metals companies – with an A+ rating from the Better Business Bureau – American Hartford Gold has helped thousands of clients protect their retirement.
Right now when you sign up with American Hartford Gold, you’re eligible to get up to $15,000 in complimentary silver and a free investor guide.
A rock solid retirement plan may also include multiple types of IRAs, based on the best fit at different points in your career.
While traditional IRAs provide tax-deductible contributions, Roth IRAs offer tax-free withdrawals in retirement, helping to manage taxes strategically.
There are a lot of options out there when it comes to IRA investing, so consulting a financial advisor specializing in retirement planning and accounts can help you open a new account or make the most of your current Roth IRA account.
Thankfully, RothIRA.org can help you can find a vetted financial advisor best suited to guide you.
The process is simple: just provide some basic information about yourself, and RothIRA.org will match you with two to three FINRA/SEC registered financial advisors near you. You can then set up a free initial consultation with your preferred advisor to further assess if it’s the right fit for you — with no obligation to hire.
Tap into real estate
Real estate can also serve as a strong addition to your retirement portfolio.
However, high home prices, mortgage rates as well as a lack of new inventory can make buying property less appealing to many buyers and investors right now. But thankfully there are ways to invest in real estate without the hurdles of purchasing and managing property yourself.
Data from the CEIC reports that the U.S. residential real estate market boasts an average growth rate of 5.5%.
And you don’t need to be an accredited investor to add income-producing real estate to your portfolio, thanks to the rise of real estate crowdfunding platforms.
These platforms allow you to invest in shares of properties, like residential and vacation rentals, without ever even setting foot in the city or taking on property maintenance, taxes or other housing costs.
Arrived is one of these accessible platforms, backed by world-class investors including Jeff Bezos, where everyday investors can invest in shares of rental homes and vacation properties, allowing you to get your foot into the real estate market without taking on any of the expensive responsibilities of a landlord.
Arrived allows you to browse their curated selection of homes, each vetted for their appreciation and income potential. Once you find a property you like, you can choose the number of shares you want to buy and start investing with as little as $100.
As an investor, your opportunities aren’t limited to residential real estate.
Commercial real estate is a highly diverse market. It has plenty of challenges, and lots of opportunities, too.
While the office sector has taken a big hit post-pandemic, a recent report from Cushman & Wakefield commented that “for the first time in years, the retail market is at a point of being supply-constrained — at least for space in quality shopping centers."
Heightened demand plus insufficient supply could drive increased rents, and strong returns for those invested.
For those interested in further diversification through commercial properties, First National Realty Partners (FNRP) provides accredited investors with access to institutional-grade commercial real estate investments.
The FNRP team has developed relationships with shopping centers across the U.S., as well as the nation’s largest essential-needs brands, including Kroger, Walmart and Whole Foods. Since these businesses are necessity-based, they tend to perform well during times of economic volatility and act as a hedge against inflation. And you can benefit from these same protections by investing in these commercial opportunities through FNRP.
FNRP offers white-glove service for investors, providing key market insights and finding the best properties both on and off-market, while investors can passively collect distribution income.
You can even invest through a Roth IRA — meaning, you’ll receive tax-free payments and distributions.
Accessing private market investments
It could be worth considering private market investments for your retirement strategy, too. That’s largely because the private market behaves differently from the stock market — which typically means you can have a less volatile portfolio.
There are many different asset classes to choose from. If you want to easily diversify your portfolio, Fundrise can help you do that.
Fundrise gives you access to an expansive portfolio of private investment opportunities spanning real estate, private debt and venture capital.
With over two million investors and managing over $7 billion in real estate assets alone, Fundrise is an accessible way to diversify your portfolio with the potential of yielding dividends every quarter.
Al you have to do is share a few details about your personal and financial background, along with your investment preferences, and Fundrise will build you a portfolio that is aligned with your goals.
Save for — and in — your retirement
Last, but definitely not least, it’s essential to have an emergency fund in retirement. Those burdensome surprises are a reason Harris’s website states she plans to cut taxes for 100 million working and middle class Americans, and Trump proclaimed he’ll “make American lives affordable again” at a North Carolina rally in August.
When money is tight, it’s extra important to have funds set aside for unexpected expenses like a trip to the hospital or a bout of car trouble.
If you’re hunting for more ways to save, the Moneywise list of the Best High-Yield Savings Accounts of 2024 offers a one-stop look at the top accounts to grow your retirement wealth in the long run.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
