From lottery tickets to life insurance: Here are 6 ‘bad assets' that could cause you to retire poor in America

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You probably know the importance of retiring with a hefty, well-diversified portfolio of assets. But what if some of your assets are actually hidden liabilities?
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If you're financially secure, splurging on your 'dream car' can be the ultimate temptation. But the average new car loses roughly 30% of its value within the first two years alone, according to Kelley Blue Book. New cars also often have higher insurance premiums compared to used cars.
The depreciation rate slows down after those initial years, which means buying a modestly used car at an affordable price is a better way to secure your financial future. Plus, you can benefit from a lower insurance bill.
According to a MarketWatch study, full-coverage insurance on new cars averages $168 per month, while used car owners typically pay $150 monthly. That means new car owners pay an extra $216 a year.
You can lower your insurance premiums further by shopping around and comparing rates from leading providers through OfficialCarInsurance.
Simply answer some basic questions about yourself, your driving history and the type of vehicle you drive then OfficialCarInsurance will show you rates from reputable insurance providers like GEICO, Allstate and Progressive.
The best part? The process is completely free and won't affect your credit score. Get started and find rates as low as $29 per month.
Buying a timeshare in Cabo Verde and spending your retirement on a beach is undoubtedly attractive, but there are caveats. Timeshare ownership involves steep initial costs, recurring maintenance fees, low resale potential and rigid usage schedules.
On top of that, the secondary market is notoriously poor, and many owners struggle to exit their agreements.
Instead of locking yourself into a timeshare, consider creating an annual travel fund for vacation rentals in your retirement plan.
One option is opening a high-yield savings account. These plans can offer up to 10 times the national APY of 0.41%.
There is a market for luxury collectibles such as vintage cars, designer handbags and luxury watches, but that doesn't mean a Rolex deserves a spot in your retirement portfolio.
Collectors of all kinds can be fickle. What's considered valuable today may not be worth as much by the time you retire.
Diamonds, for instance, were a popular collectible, but prices have declined by 26% in just the last two years, according to The Guardian.
With that in mind, it might pay to avoid the glamorous and focus on safer investments like corporate bonds or dividend stocks. Investing small sums consistently can be rewarding, thanks to the benefits of compounding interest.
For instance, investing $30 each week for a period of 20 years can add up to over $76,000, assuming it compounds at 8% annually.
Read more: Rich, young Americans are ditching the stormy stock market —
Buying lottery tickets or going all in on a new cryptocurrency is rarely a good idea, regardless of your age. But the risks are magnified when you're older and approaching the end of your career.
Instead of indulging in wishful thinking that a meme-coin or random penny stock is going to make you rich overnight, consider the safer path to retirement. Focus on assets that are relatively stable and can act as a hedge against inflation, like gold.
A gold IRA can be a valuable tool — it combines the inflation-resistant properties of the precious metal with the tax advantages of an IRA.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.
Rental income from a robust portfolio of real estate is a great way to enhance your passive income in retirement. But if you're on a fixed income, you should recognize the fact that your capacity for risk is much lower.
As a retired landlord, you can't afford a sudden housing market crash or interest rate volatility.
One option to make your dollars stretch is to consider tapping into the $36 trillion U.S. home equity market by investing in home equity agreements (HEAs).
Homeshares allows accredited investors to gain direct exposure to hundreds of owner-occupied homes in top cities across the country through their U.S. Home Equity Fund.
This approach enables investors to unlock lucrative real estate opportunities without the headaches of buying, owning or managing properties.
With risk-adjusted target returns ranging from 14% to 17%, the Homeshares U.S. Home Equity fund offers accredited investors a low-maintenance alternative to traditional property ownership.
Despite what salesmen might say, whole life insurance isn't always the ideal retirement vehicle.
These plans can usually be more expensive than term life insurance, and you have limited control over how the capital is invested.
Instead, you could consider term life insurance that protects your loved ones if the worst comes to pass. With Ethos Insurance you can sign up and get instant life insurance without any medical exams or blood tests.
The process takes just 10 minutes, and you can get up to $3 million in coverage starting at just $2 per day. Ethos has a 30-day free look period with a money-back guarantee, meaning you can get a full refund if you aren't satisfied.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.