During our working life, we all strive to achieve financial stability and provide for ourselves and our family for the days when we will no longer be able to work. By this, we mean retirement planning.

What is retirement planning?

Retirement planning is a process of identification and estimation of sources of income, trying to arrange them in the best way, achieving savings. What is important to note is that the planning and saving process itself can begin at any age, depending on your income and plans for the future.

There are several stages of retirement planning, they are related to different stages of life, from young adulthood, over early midlife, to later midlife. Each stage brings different ways of savings.

There are three basic models of keeping the property for retirement days. The first way is to keep money in banks. If you deposit it for a longer period, the interest will grow from year to year. However, this is not a sure way to save your money. Why? The reason is more than obvious – inflation is higher than the interest rate on savings almost every year, so it could very easily happen that you lose part of your savings.

Another way to invest and save money is to invest in gold. Over the past 20 years, the price of gold has been rising by 7.5% per year and successfully beating inflation. The advantage of investing in is certainly that it can be easily converted into money, preserves value, and is exempt from paying capital gains tax.

Investing in stocks today is seen by many as an opportunity for good earnings, but you can also lose. Therefore, it is essential to invest in different assets. Investing in mutual funds and stocks at first, and then expanding to real estate is the right way to invest and earn in the long-term.

When it comes to retirement savings, it’s important to think of it as part of a cohesive retirement plan. By this, we mean that it is important to develop a strategy and a budget of how much money a certain investment will bring you annually and whether it will be enough for the days spent in old age. Wise investors will be those who invest on several different sides, not putting all the eggs in the same basket. With the advent of COVID-19, we have seen that various factors can affect different types of businesses and investments. Just during the pandemic, many people lost their jobs, and many businessmen were forced to close their companies.

However, we can say that the coronavirus also brought something good, and that is the human need to turn to nature. Although the decline in real estate prices has been felt, the rise in prices can now be felt, especially in rural areas. People generally began to return to life following nature, healthy habits, and this is especially pronounced with the advent of COVID-19.

On the other hand, the population in cities is growing day by day, because the city is a place that can provide a lot, from education to business training and advancement. Real estate is a way to save money or double it because if you invest in the right location, the price can only grow. By buying a property, you will also have something that you will leave as a legacy to your children, and on the other hand, it will also serve as a place for you to rest in the period when you are not renting it out to tourists. For this reason, and many others, many see a solution in buying real estate.

Investing in real estate is a vital part of a diverse retirement portfolio. It is only important to choose the type of residential real estate in which it is worth investing.

Buying a hotel or a guesthouse can be a good investment for those who are willing to invest a large sum of money, both for the property itself and for arranging the interior and exterior, as well as training and hiring quality equipment. However, the hotel industry was on “shaky” feet this year precisely because of the pandemic, so it rightly shook many who were thinking in this direction. This action forced many companies on liquidation. The hotel industry brings with its large costs – payment of workers, taxes, utilities.

This leads us to the fact that as much as 47% of the total income is labor costs and that an additional 6% of the total annual salary will be spent on utilities. If we take for example that the average annual income is $ 350,000, according to our research the total annual cost will be around $ 220,000, which leaves little room for earnings.

Business space in a good location is a property that will never fail. It is important that it meets certain conditions and that it is multifunctional, ie that it can easily be turned into a restaurant, cafe, boutique, or office as needed.

This is a good step for those who are thinking about private business because they do not have rental costs, but also for those who want to rent space and save money for the “old days”. The advantage of business space is that decent money can be earned from it, and you have no need to take care of it.

Conclusion

At the outset of this discussion, it’s essential to note that it is important to consider both the purchase price and the renovation cost, including interior design and especially replacing the home decor before signing on the dotted line.

Buying real estate is one of the most popular forms of long-term investment, but it is important to choose the type of real estate that can bring the best return on investment. It is very important to define the purpose for which the property is being purchased, whether it is for rent or planning for your future living space. This is crucial for one reason – if you are buying a property for yourself, you will look for what suits you, but if it is planned for rent, then it is important to pay attention to the location and other factors that could bring you income.