Taking care of your pension
More and more people are choosing to take their pension and thus their future into their own hands. An important reason is that, in this way, people have more control over their savings and therefore have a better picture of their pension accrual. In addition, over the years, more people have been delving into the investment world, and part of the information is more accessible. This makes it increasingly easy for people to read up on how they can best invest for their retirement. People who arrange their pension themselves can also make adjustments in, for example, their risk appetite instead of being stuck to the plan chosen for them by a pension fund. There are different types of pension investments, and we describe the most popular forms of investing for your pension below.
Investment options for your pension
The most popular retirement savings investment options depend on several factors, including your financial goals and risk appetite. Some much more likely investment options are:
Investing in individual stocks or back-to-back exchange-traded funds (ETFs) is a popular choice because this type of investing can result in higher returns in the long run. Investing in stocks allows you to watch the growth of companies and the economy, which can lead to an increase in the value of your investments over time without putting in too much effort.
Bonds are a more conservative investment option that can earn a steady income stream. Therefore, they may notably appeal to individuals closer to retirement who are looking for a more secure investment to provide a stable source of income in retirement. In addition, bonds can help diversify an investment portfolio, lowering overall investment risk. It is important to note, however, that bond prices can fluctuate and investing in bonds involves risk, especially if the bond issuer is in financial functioning.
Index funds are a popular retirement investment method because they offer low fees and diversification. Investing in an index fund allows you to benefit from the returns of a broad market index, such as the S&P 500, without choosing individual stocks. This can help you reduce investment risk and minimize the impact of short-term market fluctuations.
Real estate crowdfunding
Investing in real estate through crowdfunding is becoming an increasingly popular way to build up your pension. Where real estate has always been a valued and stable way to build up your retirement, crowdfunding ensures that everyone can use this option. With crowdfunding, you can invest from €100 in real estate projects and get consistent returns. In this way, real estate has become an accessible way of investing for everyone. The average annual return differs per platform and type of real estate investment, but some platforms give an average of 10% interest annually. Due to the average high-interest rates associated with the relatively low risks of investing in real estate, investing in real estate via crowdfunding is one of the best ways to invest for your pension.
How does investing in real estate via crowdfunding work?
Investing in real estate through crowdfunding ensures you can co-invest in real estate projects for low amounts. This is because crowdfunding platforms bring project developers and investors together. In short, this means that a project developer needs financing for their real estate project's purchase and/or renovation and finds this financing at a crowdfunding platform. This crowdfunding platform places a loan online, which private investors can easily invest in until the target amount has been raised. After the amount has been collected, the crowdfunding campaign will be closed. The amount collected will go to the project developer, who will start the purchase and renovation process. For more information about investing in real estate through crowdfunding, click the button below.
Benefits of real estate crowdfunding for your pension
Investing in real estate via crowdfunding offers many advantages when building up your pension. Below we list the main benefits:
- Potential for a steady income: Real estate investments can provide a steady stream of income through rent payments, which can help provide a consistent source of income in retirement.
- Diversification: Real estate can help diversify an investment portfolio, reducing overall risk.
- Alternative Investments: Crowdfunding for real estate provides access to alternative investments that are not typically available through traditional retirement plans or investment options.
- Easy entry: real estate crowdfunding can provide access to real estate investments with lower minimum investments, making it more accessible to include real estate in your retirement portfolio.
- Professional Management: Real estate crowdfunding platforms often provide professional management for the properties in their portfolios, which can help reduce the risk and hassle associated with investing in real estate. This ensures that you do not have to be a real estate expert to start investing.
However, it is essential to remember that investing in real estate through real estate crowdfunding involves risk and that past performance is no guarantee of future results. In addition, it is essential to thoroughly research and understand the investment before investing any money.
Build up your pension at Max Crowdfund
Start building your pension portfolio yourself through real estate crowdfunding and receive an average of 10.3% interest per year. Decide for yourself which projects you invest in and start from €100. New investment opportunities come online every week in which you can invest to receive monthly interest.