Future-Proofing – 5 Investment Strategies to Start in Your 20s So You Can Retire in Your 30s

There’s a common fallacy that you have to be old and gray before you can start enjoying the fruits of your labor. Why should you wait until you’re getting on in years before you live the high life? With the right investments, you have plenty more years of retirement to enjoy. Here are five strategies that can see you retire far earlier than you may believe possible: 

Real Estate

Real estate has long been thought of as one of the best ways to achieve the highest returns and greatest value for the least risk. Around 90 percent of millionaires have become rich by owning real estate. Therefore, if you haven’t been in talks with a commercial real estate agent yet, now might be the time. 

Both commercial and residential property investments can be sound if you have the right experts to guide the way. Choose a location, study the market, then snap up the right property that will set you on the path to financial freedom. 

Peer-to-Peer Lending

You can earn around 2% or less on the money you put in the bank for a rainy day. That means that if you had $10,000 in savings for one year, you would make around $200 – give or take. If you want to set your sights a little higher and focus on more significant returns, you can put that money to good use in a lending scheme. 

Peer-to-peer lending is the process of lending money to someone over the internet through a secure platform. The interest rate is often higher than what you would receive through your bank. Several lenders can contribute to one person’s loan, and the higher the risk, the more money you can earn. 

Dividend-Paying Stocks

Making your money work for you is essential. Otherwise, you can never hope to retire as early as you planned. A way in which to get the most bang for your buck in the stock world is through dividend-paying stocks. Target stocks, or even mutual funds, that offer dividend pay-outs. This means that the fund company does all the work, and you get the fat paycheck at the other end.   

Corporate Bonds

Sometimes getting ahead involves stepping out of the safe zone and into that riskier territory. If it pays off, as it often does, you can make far more money than you thought possible. Corporate bonds work similarly to Treasury bonds, but the government does not back them. 

The debt security is between you and a corporation and is backed by that company or corporation’s ability to use its assets as collateral or pay you back in funds. This type of bond investment has a higher return in many cases because it’s a riskier form of investing. 

Preferred Stock

If you want to make regular income, but with not a lot of risk, then preferred stock could be an excellent option for you. A preferred stock has both equity and debt in the bond portion and is traded on a far less frequent scale than common stock. While the returns are smaller than if you were to invest in bond payments or common stock, you do get to enjoy dividend payments and a share in a company.   

There is no such thing as a ‘sure thing,’ but there are undoubtedly lucrative investment strategies out there that could be worth your while. From dabbling in the stock market to trying your hand at real estate investment, there are options galore. Are you ready to enjoy a long and lucrative retirement?

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