Retirement planning has two phases, pre-retirement which can be described as the pre-accumulation of wealth, and post-retirement which is the distribution of your accumulated financial assets. As you near the retirement age, it is important to collate the amount that you need upon retirement and put it into various investment instruments to grow your money. The accumulated amount must be sufficient to meet your needs and wishes.

Here’s how private loan can help you avoid running into retirement trouble.

Debt-free but with zero savings

If you’re in your 40’s, with no debts, mortgage, and no dependents to support but you have no investments nor savings, you can take out loans for bad credit to invest for your retirement.
It is a solid way to grow your funds through specific investment options, one of which your retirement fund.

Here are some of the practical investment strategies with low-risks:

  1. Set aside a 6-month emergency money into an accessible emergency fund.
  2. Asset allocation and index funds. The best way to lower the risk is to balance your portfolio by dividing it into three. For example, you put 33% into Bonds, 33% into an International Stock and 34% for government Stocks. If you have $100,000 that would mean $33,000 should be in bonds, $33,000 into International Stock (include emerging real test reinvestments) and $34,000 into government Stocks.
  3. Put money into a retirement fund. You can apply for government benefit and get paid with up to $28,000 per annum when you reach 65 years old. You don’t have pay into the system because the government’s general revenues pay for it. But, it is still advisable to get your own retirement fund if you want a comfortable retirement. Even if you are employed and covered with the mandatory savings account financed by your employer which you can choose to invest in various investment vehicles, retirement funds can give you extra income when you exit the workforce.

With debts and minimum savings

  1. Pay back the debts – Making payments to your credit card providers and lenders can be stress-free if you consolidate your loans. It will also save you some money which you can use for your needs, or probably to re-invest into a business (if you have one). Debts become manageable only when you have ample revenue flowing into your account at least on a monthly basis. So, if you are employed or if you run a business, it is important to lower your debt by making payments more manageable while you still have a steady stream of income. This way, you can avoid bankruptcy which can be very detrimental to your credit score.
  2. Take advantage of tax deductions – You can save money by applying for private loans, especially if you are going to sue it for business purposes. The reason is that in many cases, you are allowed to deduct the principal and the interest payments on your business loans as business expenses. It could mean lower business income taxes and higher income for you.
  3. Invest your money in variable or fixed costs – While you may not easily see returns on investments when you spend your borrowed funds on fixed costs such as office equipment or furniture, it is up to you to make a full use of these items to compensate for the lack of direct cash returns. Let’s say, you are working online and you borrowed funds to buy a new computer for your day to day work. Just consider it as an important purchase which is vital to carry out your work. But, make sure that you maximize its use and pay on time because the installment payments on your fixed costs loan will be due soon after the fund is released.

If you are using the money for variable costs, such as for the purchase of inventory materials to sell, you can expect an immediate cash inflow as a result. You can use the money to grow your business and set aside a spare amount for your future needs.

No one is too young or too old to prepare for retirement. it is just a matter of perspective—if you want to create a solid investment strategy based on your personality, needs and goals, then you must be willing to take the risk that your goals require., You may not be able to beat the market, nor shield your finances from inflation all the time. But, you can avoid unnecessary stress by protecting your savings, maintaining a disciplined approach to budgeting and refusing to ride the roller coaster shopping, vacations and investment trends that may damage your wallet.

Start amassing a nest egg while paying debts by choosing a private non bank lender that can help you with personal loans and unsecured business debt consolidation, and put more money into your retirement savings to carry you through 30 years or more of your life.