PRIVATE EQUITY INVESTING: Looking for a fast track towards retirement?
Can investing help you transition into retirement?
The peculiar thing that most miss about the major link between retirement and investing is that with the right portfolio it can lead to a great financial outcome on your later days, but also lead to fulfillment and happiness.
And yes, the matter of retirement is very much a matter of money and savings. But that, though significant, is not the only point that matters. Many people with considerable amounts of money are utterly miserable in retirement:
- Completely dedicated to work.
- Without interpersonal relations whatsoever.
- Loss marriage.
- No friends.
A sacrifice of the most important things to them in the hope of getting it back later.
But with investing you don’t just have financial aspects. Just as with retirement, a new outlook appears:
- Talking to people who are in different kind of industries and always reading, creating, posting, and sharing their projects.
- You get access to their achievements.
- Become a part of something bigger than you.
- And you even get to witness the products or services that they have backed.
- Develop a feel for what you might be interested in helping create.
All of these aspects foster positivity and coupled with planning, structure and activity since many projects demand deepening social connections, building knowledge and developing new skills.
Now this is not to say that only these aspects of investing can fix all your retirement anxieties and that every avenue is worth pursuing. Investing can be an immensely profitable endeavor that can accelerate your path to a very happy and comfortable retirement.
One that you can actually enjoy.
But, can I get there faster?
The first thing we have to get out of the way is that: if you think building up capital to retire within ten years is impossible, think again.
Actually, early retirement is absolutely possible.
Most people don’t think too much about retirement until after they’re retired. Only then do they find out how unprepared they were, and how many things they didn’t do. So, drop the negativity and start thinking the right way, early in life.
The second thing you need to consider is: retiring early doesn’t need a large income, in fact it’s possible achieve it with different levels of earnings.
Now, some useful tips to get you going.
These are the two key income sources for early retirement
Portfolio diversification is always important when your aiming for a high ROI, which is paramount if you’re looking to accelerate your retirement plans.
And although there are many opportunities of income generation for retirement, there are some avenues that due to their high profit potential are the most commonly considered to get the job done.
- Stock market investments
- Real estate investments
Investing in the Stock Market offer many options that range from the day trading shares to the buy-and-hold long term investment. This means that the amount of money you’ll need to meet your retirement income per month will vary depending on the options you choose and the performance of the market.
You could invest $6,100 per month over a ten-year period in a mutual fund earning an average of 10 percent annually, to obtain just over $1.2 million in a decade. Using the “rule of 4,” you could safely withdraw 4 percent of your investment fund’s balance each year and this would effectively let you retire with a monthly income of $4,000.
Of course, saving $6,100 per month is not as easy for everyone.
This is where diversifying your portfolio comes into play.
But in general, it’s important that the options you choose fit your style and that is true for any investment option out there.
Real estate investing works out wonderfully for some people and disastrously for others. Where some have been able to replace their income and retire early, others have lost their life savings.
Knowing what you are doing is key. And just because a flip works every week on TV doesn’t mean it’s going to work for you.
Real state comes with inherent risk which are best offset by finding someone that has succeeded and learn from their triumphs and mistakes. Still, one hypothetical way you could use real state to get your portfolio on the early retirement track is:
You buy a single-family home with 5 percent down and a ten-year mortgage, which you use as your primary residence. Then, you save diligently to pay this property off by living frugally and saving as much as you can.
Then you save tens of thousands of dollars aside to prepare to buy a second similar home to live in and then you rent the first house. You could save up approximately %75 of that new income (after taxes, insurance and potential repairs) which you’ll use as a down payment for a third and fourth rental home in a few years.
By doing this you can create a plan to use your income from your regular job – along with your rental income – to pay off the other three houses in a six-year period and in a decade, you could be retiring and live off the rents’ monthly income.
The best kept secret: Private Equity A Must for Retirement Portfolios
You can’t’ be truly diversified unless you’re aware of the advantages of alternative investments, and one of the better alternatives is private equity investing.
Those ignoring or without access to the private equity are missing out on significant investment opportunities that could improve retirement assets.
The hard part is that the private equity market is one where regulators have been traditionally shut out. But since the SEC recently issued a proposal stating their desire to expand retail investor and retiree access to private equity and venture capital, this will likely change the qualifications for investing in these funds, making it easier for small investors to buy private equity shares.
Things are starting look much better that before.
But, aren’t private equities a risky investment?
In many cases, private equity offers come with certain sales restrictions, sometimes specific conditions are imposed for the share’s sale forbidding it for days or even years after the company begins its participation in the public stock market.
In consequence, if the company decides to participate in the stock market, the value of its shares may rise when the owners (who don’t share these restrictions) make the shares’ sale.
Nonetheless, there is an investment avenue out there that can represent a better and safer choice for your retirement plan, a mix between:
- The liquidity of a publicly-traded stock
- The advantages of private equity.
We’re talking about a New Asset Class introduced by Konzortia Capital, a holding company for a fintech consortium that -with its private sale of preferred stocks- aims to redesign the financial world that everyone takes for granted.
The best part? You still have a chance to participate on their private sale phase, which means they’re offering to visionary investors the opportunity to participate at their ground-floor level with special advantages and preferences. Click on the link below and find out why this private company is the best investment option to get you on the fast track to early retirement.
Follow the link below to learn more about how you can turn the twilight of your current life into the dawn of your bright future.