As people are planning for retirement there is that inevitable fear of running out of money. Will we enjoy retirement without outliving our nest egg? Have I saved enough for this?
Sometimes it is best to keep a little extra income on the side but how can this be done? If this will be your first time investing then this is for you!
Here are five investment ideas for retirement.
Its purpose is to produce income and that is what you need in retirement. When you know that you can get a check every month, guaranteed, is very comforting. It may not sound so appealing in numbers but at least you don’t have to worry about your money running out and you could invest the rest of your assets a bit more aggressively.
There are two types of annuities, fixed immediate annuities and variable immediate annuities. Some may offer income that’ll increase with inflation but this means that you will be receiving a lower monthly amount.
Immediate annuities can be a good solution for those that don’t have other sources of guaranteed income or for singles with long life expectancy.
When you buy bonds, you loan money to the government, corporation or a municipality.
The borrower agrees to pay you interest for a set amount of time and when the bond matures, the principal is returned to you. This can be another source of steady retirement income. You can buy bonds for the income they produce or the guaranteed principal you will receive when they mature. Don’t buy them expecting high returns or making a gain in capital appreciation.
Rental Real Estate
Rental properties can provide a steady source of income but you should also be prepared for maintenance costs. Before you buy a rental property, you will need to calculate all the potential expenses that may arise over the time frame you think you will own the property.
Don’t go and start investing in real estate just because you want to join the bandwagon. Make sure you do your homework, read books on real estate investing, talk to experienced investors or join a real estate investment club before jumping in to the investment property business.
A Gold IRA is an individual retirement account. Gold is stored in several forms whether coins, bouillons, bars or other goods. It is a viable and profitable venture since precious metals are a stable asset in the market, despite inflations and fluctuations, it is just increasing steadily all throughout.
It doesn’t rely on overall performance of other assets and only requires very simple arithmetic calculations to see its potential and how it can grow over time.
You will want to keep a portion of your retirement fund in other safe alternatives. The primary goal of a safe investment is to protect what you have rather than generate income. This could be an emergency fund and it should not be included in as an asset to produce retirement income. This is a safety net, so that you will have a back-up, should something unexpected happen in the retirement years.
If you are unsure with what to do with your money, stash it into a safe investment while you take time to think things through and make an educated decision.
Not all of these ideas may be for you, so it’s best to check out things first. A lot of people rush to put their money into an investment because they feel like their money should not be sitting in the bank and this is not exactly a wise decision.
Making thorough and well-informed investments take time. Educate yourself or ask advice from advisors. No one should pressure you into making a quick investment decision. If you feel that you are being pressured then walk away from it. That person may not have your best interest in mind.