Retirement Crisis Investing – Investment Strategies for a Better Future
As you get closer and closer to retirement, you may start worrying whether the money that you have been saving since you started working is going to sustain you through the whole period of retirement. After factoring in inflation and your personal needs, you have probably realized that the money you are going to have at the point of retirement will not be enough to cater for your needs. This can lead to a lot of anxiety. Fortunately, there is something you can do to deal with this looming crisis. You can invest to keep your money safe and to earn more from your investment so that you can have enough in future. Here are some investment strategies that you should use if you want to sustain your lifestyle or even live a better life when you retire;
When you invest in a bond, you are loaning your money either to a corporation or to the government. Buying bonds is a great way of keeping your retirement savings safe and earning some extra money. When you buy bonds from the government or a corporation, you will get the principal amount you invested plus interest when the bond matures. The interest paid out when the bonds mature can be your good source of income when you are a retiree.
Invest in real estate
Real estate is one of the best investments you can make to get a stable income when you retire. You can develop a rental property that will earn you rental income throughout your retirement. You can as well buy real estate properties now and sell them in future at a higher price. However, you have to keep in mind the fact that you will be required to carry out maintenance on your real estate property from time to time. With proper planning, carrying out the maintenance tasks won’t be a problem. When you do things right, real estate can be a great retirement investment.
Invest in stocks
You can earn some income now and when you retire by investing in stocks. However, if you are not very familiar with the stock market, you should seek advice from an expert in the stocks market. Since you are investing for the long run, you should invest in the strong companies that have been around for a considerable amount of time. When you invest in stocks, you will be earning income in terms of dividends at the end of each financial year.
Buy an annuity
An annuity will provide you with guaranteed income when you retire. The guarantee of a regular income is as strong as the insurance company that offers it. With an annuity, you agree to give an insurance company a large sum of money and the company agrees to give you a monthly income throughout your life. If your life ends one year after signing the contract, the insurer keeps all the money that is left. If you live to be older than 100 years, you will always be receiving income from the insurer every month.