Retirement means end of monthly paychecks. With no addition to your income, you need to invest the money you got after retirement in various investment vehicles to make it grow. Your aim should be to safeguard the retirement funds while at the same time making efforts to increase the amount to be able to fight inflation. Here are 5 of the top retirement investment tips to help you in your endeavor.
1. Get a Decent Mix of Stocks and Bonds in Your Portfolio
Stocks are shares of companies listed in the stock market. Shares typically yield a high return on investment but they are also volatile by nature. On the other hand, bonds are offered by companies at a fixed interest rate which is lower than returns offered by stocks.
If you desire high returns but also want the safety of your money, it is a prudent idea to make a portfolio of stocks and bonds. You can also invest in mutual funds that are maintained by professionals and yield higher returns than bank accounts and cash deposits with a lot of safety.
2. Monthly Income From Annuity
If your retirement is close, you can buy a fixed income annuity from a reliable insurance company. The insurance company manages the money given by you and allows a guaranteed monthly income for you.
You can have this monthly income for the rest of your life after retirement. Do not forget to compare the annuities offered by different insurance companies as administrative charges levied by different companies are different.
In terms of fixed monthly income after retirement, there is nothing to beat these annuities. You become free from the worries of volatility of market as this risk is borne by the insurance company.
Also, you need not worry about your longevity as the company will continue to pay till your death. If you have aversion to risk, annuity are the best investment tool for you after retirement.
3. Cash in Bank in Addition to Market Investment
If you want to avoid the anxiety of highs and lows of stock markets, it is better to keep a substantial part of your retirement fund in a bank to have enough cash for monthly expenditure after retirement. This way you will not feel the pinch if the prices of shares held by you take a nosedive. You can continue to draw money from the bank account and allow the money in stocks to build up as your chosen stocks recover and grow.
4. Have a Retirement Plan in Place Before You Actually Retire
No matter what you do to secure your life after retirement, make sure that you know your options of investment. There are many investment tools available to you and you can know about your prospects on your own or by hiring the services of a retirement planner.
5. Do not Fall in the Trap of Ponzi Schemes
There are many companies duping investors after luring them with very high returns on investment. Do not become a victim of any such scheme that promises very high returns on investment./5-retirement-investing-tips//wp-content/uploads/2016/01/old-men.jpg/wp-content/uploads/2016/01/old-men-200x104.jpgInvesting