retirement investments

Retire Financially Stress-free with these Investment Options

Although retirement is supposed to be the time where you can relax and enjoy the results of decades of hard work, this will only be able to be done successfully if the appropriate financial planning has been carried out ahead of time. While there’s no investment option that can be 100% guaranteed, below are some examples of savings options that will enable you to make the most of your golden years without having to worry about money all the time. 

Your Age is Crucial

Before jumping into any form of retirement-related investments, it’s essential that you take your current age into account. 

When you start nearing retirement age, you’ll need to ensure that investment choices lean more towards becoming more conservative and less aggressive or high risk. For instance, while in your 20s and early 30s, it’s still feasible to take bigger risks such as investing large sums in the stock market. However, upon reaching your 50s and early 60s, it will be better to work with safer options such as Certificates of Deposit (CDs) or immediate fixed annuities. 

Interest from Savings Accounts and/or CDs

In cases where interest rates are favorable, this can be another excellent option for making a safe investment towards retirement. However, it may not be possible to rely solely on this interest unless you also have a sizeable sum of cash invested in a savings account or CD because interest rates usually only reach as high as 3% on them. This means that for every $100,000 you have invested in them, you can expect to receive a mere $3,000 a year in interest – minus any account or brokerage fees that may apply. 

Bonds

When buying bonds, it means that someone else out there owes money to you and they will be paying you interest on a regular basis. When used alongside an already well-diversified portfolio, safer bonds like those issued by government and federal government agencies and other organizations that have proven to be financially feasible could provide you with an excellent source of retirement income. 

Immediate Fixed Annuities

If it’s a safer and more predictable investment option you’re after, immediate fixed annuities are a fantastic option. These will involve having a contract compiled upon purchase that will provide you with a specified and guaranteed amount of income over a specifically predetermined timeframe. Most of these will usually start paying out almost immediately – normally the month after purchase – and monthly thereafter. 

A few alternative reliable and relatively safe forms of income that can be relied upon during your golden years can include real estate investment trusts (REITs), income derived from one or more rental properties, and in some cases home equity. If desired, you could even consider taking on part-time employment that will not only provide a little extra cash; it will help keep your mind and body busy as well. 

If you would like to find out more about making the right investment choices for your retirement, contact our team to schedule an appointment today. 

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