The Top Ways To Save For Retirement Outside of the Stock Market

How will you get ready for retirement? Most people are focused on saving money via the stock market. The thought is the market will go up, which allows you have enough to live on in their golden years.

This is how we view our retirement:

How many of us see our retirement happy and healthy, enjoying our quality time with our loved ones stress free?

For a lot of us, retirement is taking it easy, enjoying our lazy days. There’s nothing wrong with this thinking. This is how it should be.

Unfortunately, that’s not always the case. For many retirees, their golden years look like this:

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When planning for our retirement, this is the last thing we envision.

Like it or not, this is the reality some of us will face as we age. This is where our retirement plans play a pivotal role in our lives.

The Raw Reality

There’s a good chance we will have some type of medical issue as we age. Heart attacks, strokes, and other health issues are common, and these medial emergencies can be expensive. If this happens to you how will you pay for it?

The average approximate cost for various ailments that require hospitalization are the following:

  • Heart attack: $40,000
  • Stoke: $20,000
  • Diabetes $9,500
  • Heart surgery $200,000
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In addition to going to the hospital, some may have to go to nursing homes, where the average cost can be $7,000 per month. These costs can add up to the tune of hundreds of thousands of dollars. How will you pay for these expenses?

Yes, insurance will pay some of these medical bills, but for many of us, we will have out of pocket costs as well. This is where your retirement savings come in.

Dealing With Unexpected Expenses

For the average person, their primary way of saving is via the stock market. We are told to contribute to our employee-sponsored retirement plan so we have enough for retirement. We will then live off these savings for the rest of our lives.

While this sounds good, here are some points to consider:

  • What if the market crashes?
  • What if I outlive my savings?
  • If I have a medical emergency, will I have enough to cover it and maintain my standard of living?

We MUST take into account that we could encounter some MAJOR expenses as we age. In addition to the above, other situations could occur, such as having having unemployed children or family members living with you, or still having to take care of others.

The Importance of Monthly Cash Flow and Passive Income

When a person reaches retirement age, they should be able to retire and enjoy life, but that’s not always the case. In some instances, a person may have to continue working to make ends meet. But as shown above, what if they are unable to work? What if they want to work, or have to work, but physically unable to?

For these very reasons, it’s critical a person look at ways to generate passive income OUTSIDE of the stock market.

Investing in the stock market means purchasing stocks or assets made of paper. Stocks, bonds, cd’s and mutual funds are examples of paper assets. Another form of investing is to accumulate tangible assets. In this video I discuss various ways to invest outside of the stock market and its importance:

Tangible assets are assets that are unrelated to the stock market. They tend to hold their value and many can provide a constant income stream that can last for years. Having this monthly income can be a life-saver when dealing with unexpected medical bills or other emergencies.

Examples of tangible assets include the following:

  • Precious metals (gold, silver, copper, etc.)
  • Rental property (residential, commercial)
  • Franchises (fast food, etc.)
  • Laundromats, dry cleaners
  • Small businesses
  • Published books, songs, music, etc.

By having several forms of passive income, you could increase your probability of living comfortably in retirement. You may not have to dip into your IRA or 401k, and have revenue generating assets that can be passed down to your heirs.

These assets could even decrease in value and still generate a monthly income stream. For example, real estate prices can fall, but renters still must pay their rent.

Other revenue generating assets would include those internet based, such as monetized blogs or websites. Many consider cryptocurrencies such as bitcoin and ethereum assets as well.

Planting Seeds

This post is not designed to scare or offend anyone. However, it’s important we think about these things and prepare accordingly. Of course we do NOT want to have these various medical emergencies, but they can happen to any of us. We must be prepared for the unexpected.

This type of thinking means changing our mindset on how we prepare for retirement. We are taught to focus on capital gains, but cash flow can be a viable option for us as well. These topics are not discussed in school, and most financial advisors won’t advise their clients on tangible assets as they are not licensed to do so. Another reason is they won’t receive a commission on those investments.

The average millionaire has at least 7 streams of income. Multiple streams of income becomes even more important as we get older:

Action Steps

The world is changing right before our eyes. Thanks to the coronavirus, entire countries have been shut down. Many people are out of work, waiting on a government check to help them pay their bills. What if that help is delayed or never comes? What if the money received isn’t enough, or you simply can’t find a job?

In addition to money matters, it’s critical we take care of our bodies and overall health. Many health issues are caused by poor lifestyle choices that build up over the years. We must focus on our health and eat foods that keep us healthy and decrease our intake of foods high in sugar, sodium and artificial ingredients.

You must look into generating multiple streams of income, cash flow and passive income. Take care of yourself mentally, physically, and financially. By starting now, your future self will thank you.

Get more tips in my books Invest For Success: Millionaire Wealth Strategies Not Taught in School, and The Diet of Success: Millionaire Wealth Strategies . Both available on Amazon in eBook, paperback and audible formats.

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