Ideal Investment for the Retirees
Retiring from work is inevitable. We’ll all end up finishing our careers and hope for a good life after. That is if we earned and saved enough for the future.

Gail Val Oxaldes, a financial author and columnist, said retirement is the best time of life. However, that dream slowly vanishes when one isn’t prepared for retirement. Retiring age also posed the risk of illness, poverty, and loneliness for some. But Oxaldes further added that retirement doesn’t have to be that way. If you want to pursue a successful retirement, then proper planning is required.

Being retired doesn’t mean the ending of earnings. If you are thinking of how to survive when your source of income has stopped, one of the best ways to ensure a sustainable life after retirement is to invest. And you can only do that when you retire properly. Experts agree that “You can’t earn back your nest egg without a steady paycheck.” So when you retire, you’d better make sure you’re investing wisely and safely.

So, how do you find the best income-producing retirement investments without having to go back to work? Here are a few options we suggest you take:

1. Life Insurance

You actually need to invest in life insurance when you were younger. Because at retirement age, you might not be able to qualify for one. But in any case, it would still be beneficial to get life insurance for your younger loved ones and family members.

Life insurance primarily protects families from the early loss of a breadwinner during the working years. With a life insurance investment, the return is guaranteed. It’s a very easy and automated way to save money that gives a good return. Life insurance is also an excellent way to help your beneficiaries pay estate taxes on other assets such as a business or property.

2. Annuities

This is another insurance product that pays out like income and a good investment strategy for retirement. Annuities are a popular investment choice for people who want to receive a regular income stream after retirement.

Annuities are supplemental income sources. They’re a great way to provide guaranteed lifetime income while battling against inflation and other financial woes. It’s advantageous compared to other kinds of retirement investments, especially for those not able or willing to risk losing their retirement savings. They can be like lifetime income, tax efficiency, and inflation protection. Given these benefits, your retirement assets can be efficiently used to purchase guaranteed income to last as long as you need.

3. Real Estate

Real estate is a good way to diversify your investments away from insurance and the stock market. It’s a good investment strategy to build your real estate portfolio and generate income. If you purchase rental properties, it’s considered as a long-term investment with much less volatility than stocks. Home values change over the years, not hours, like equities. So, what makes real estate such a powerful retirement investment?

Owning rental properties give huge tax advantages. Real estate investing equates to less tax liability and save you many of the needless fees that accompany many other forms of generating income for retirement, such as investing in the stock market.

Pay mortgage from other people’s money through rental. The rent paid by a tenant let simple compound interest take over and acquire a powerful passive income stream. You end up finishing your mortgage and owning a house from rental payments.

Real estate positively increases in value. If you invest in a solid property with potential and a good location, then you’re more than likely to not only see an increase in cash flow, but also net worth.

 

While having said these, real estate investment can be a little tricky, especially if you’re a newbie. But it shouldn’t deter you because the benefits await those who are patient and are keen on their goals. Try to learn the ropes of getting a home mortgage. You may seek advice and assistance from experts to keep you guided in the process. Seek out our other resources and learn ‘Why real estate is a smart investment’.

If you want to use real estate to build a steady source of retirement income, exercise patience and work systematically as you build a portfolio of income generating properties.​

4. Bonds

A bond is a loan an investor gives to a borrower, such as the government or a private corporation to finance projects or operations. You invest in a bond by paying a certain amount which later is loanable by another party. As a bond owner, you’ll earn interest in the agreed time and when the bond matures. Plus, the principal will be returned to you. So, you’ll get the full amount you invested with the interest that grows over time.

In retirement, individual bonds can be used to form a bond ladder with maturity dates set to match your future cash flow needs. This investment structure is often referred to as asset-liability matching or time-segmentation. This can be very beneficial as you secure not only your future but also of your family.

Conclusion

When you retire, you reach a point where your income is going to be limited in comparison to when you were working and earning regularly. That may be true, but with investing you can turn the story differently and earn more than before. The investing world is full of options for your retirement money and seeking out counsel with a financial advisor will help you understand the concept of investing and which types of financial products best suit your retirement goals.

Keep these ideal investment options in mind and enjoy some lazy days on the beach, without worrying about money. Well, not lazy, just cozy.