In order to live a comfortable and financially secure post-retirement life, it is important to save more and spend efficiently. However, if you want to amass a great amount of wealth after retirement so you can make some profitable investment, savings alone will not be enough.

Let’s take a look at some of the best strategies to ensure a wealthy retirement:

Individual retirement accounts

Individual retirement accounts are a popular strategy of building a strong post-retirement income, and they also help taxpayers receive tax benefits for their savings. You can create a variety of individual retirement accounts, including traditional, simplified, employee pensions and Roth individual retirement accounts. Each specific type of retirement account has its own tax deferrals and procedures, and they mainly constitute of a variety of financial products, including stocks, bonds and mutual funds.

Investing in Real Estate

Real estate investments are another popular way of creating long-term investments that will prove fruitful for a wealthy post-retirement life. Investors buy properties to resale them, some invest in rental properties that provide a source of income, while others invest in summer homes that can also be resold in the future. Those who want a constant income stream after retirement find rental properties more attractive. Majority of the taxpayers use their individual retirement accounts or their 401k to invest in a mutual fund and make investments in the real estate industry so they can gain greater wealth after retirement.

Employer-Sponsored 401k Plans

Savings and investment plans sponsored by the employers, such as the 401K, are beneficial for both, the employer and the employee. The employee attains a low-cost benefit model that allows them the facility of discounts, whole employers benefit from the tax deductions. Majority of the firms employ this strategy to retain bright and efficient employees, and match their contributions with beneficial and attractive post-retirement plans. A 401k is always an attractive strategy because it opens up several opportunities for future investments and tax deferrals.

Brokerage Accounts

Even though this strategy does not provide any tax deferrals, it opens up a wide range of investment opportunities, such as bonds, ETFs, real estate investments, trust funds, stocks, money market funds, deposit certificates and more. Brokerage accounts allow you to benefit from aggressive investment opportunities such as mutual funds, bonds and stocks, which multiply your likelihood of amassing a great deal of wealth, as compared to a savings account. Besides, certificates of deposit, bonds and money market funds are associated with less risk and greater gains, and they ensure stability and financial protection for a wealthy post-retirement life.

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