Retirement; like your parents, but way cooler
In 1991 Billy and Akaisha Kaderli retired at the age
of 38. Now, into their 4th decade of this
financially independent lifestyle, they invite you
to take advantage of their wisdom and experience.
4 Investment Options for Retirees
Samuel Mills is a full-time blogger who focuses on producing content about
senior life. Samuel aims to help readers know more and adjust easily to senior
life. Aside from making sure that his blog is regularly updated with informative
content, Samuel also submits guest posts to other blogs and websites.
Retirement is just the beginning of living
life to the fullest. It should be the point in a personís life wherein finance
is no longer a problem. However, the reality is different from the ideal
setting. While retiring means stopping from long years of working and enjoying
the fruits of your labor, many people spent all their money paying all sorts of
expenses, like student loans, as well as car, insurance, and mortgage payments.
If youíre a senior or about to retire, you
might want to consider the following investment options:
Stocks are a risky investment recommended
for younger investors. However, retirees can still include stocks as a part of
their investment portfolio. Generally, your stock portfolio percentage should be
100 less your age. For instance, a 60-year-old investor can invest 30% of their
money in the stock market. Of course, you can decrease or increase this
percentage, depending on your risk tolerance and personal circumstances.
Take a look at the following stocks investment tips:
Continue Learning: Continue to equip
yourself with financial knowledge, such as by taking advantage of the
financial newsletters, to stay updated on the latest new and business
trends, especially stocks.
Choose Steady Stocks: Donít chase
huge returns from tech stocks as younger investors do. Invest in stocks with a
steady growth rate, offering dividends to put money in your pocket regularly.
Mutual Funds: Choose mutual funds
that focus on dividend stocks managed by experienced investment professionals.
In mutual funds, youíre investing in many different stocks. Hence, reducing your
risk of losing all your money if one of the companies isnít performing as
Whether you want to
retire before 50 or 60, investing in a bond is a good idea because it makes
you a co-owner of a company or corporation. Unlike stocks, the returns of bonds
are more predictable. Although you canít expect significantly higher returns,
buying a series of bonds results in a small cash infusion over consecutive years
instead of a single big payout.
Check the following tips when investing in bonds:
Consider Investing In Mutual Funds:
This investment option is an attractive option for retirees. With bond mutual
funds, you can invest in different bonds, usually with staggered maturity dates.
It means that youíll get consistent income with mutual funds managed by
Understand All Costs: Itís important
to understand the costs associated with investing in a bond. Inquire how the
broker or brokerage firm is being compensated, including mark-ups, mark-downs,
Don't Time The Market: Donít
speculate on interest rates. Itís best to stick to a good investment strategy to
attain your financial goals.
Certificates Of Deposit
This low-risk investment option is similar
to having a savings account, but with a twist. While savings allow you to
deposit and withdraw money several times a month, CD holds your money for a
predetermined period or a term (ranges from three months to five years) in the
bank. During this hold period, your money accrues interest. A penalty applies if
withdrawals are made from the CD before the end of term or maturity date.
You can cash out your original money
deposit and the accrued interest as your CD matures. Also, you can roll your
funds into a new CD. Any interest earned should be reported as taxable
Here are the reasons why many retirees
choose this form of investment:
Certificate of deposit tends to have more
favorable interest rates as compared with traditional savings accounts.
CD is a safe investment option as compared
with a stock investment in the stock market.
It gives you an assurance that you have
money to use later in your life.
Real Estate Rentals
Rental Properties can be a good source of passive income. Itís a
promising retirement investment if you have a huge amount of money. If you
have the right price, you can earn money from rental fees, taxes, landlord
salary, and the mortgage, while putting extra money in your pocket.
As you can see, retirement is a good time
to invest, especially if you hadnít thought of investing in stocks, bonds,
CDs, and rentals when you were younger. You can choose the most suitable
investment options for you to keep money coming over time. Investing is one
way to keep you busy, comfortable, and worry-free after your retirement.
For more information on
About the Authors
Early Lifestyle appeals to a different
kind of person Ė the person who prizes their
independence, values their time, and who doesnít
want to mindlessly follow the crowd.
Retire Early Lifestyle Blog
About Billy & Akaisha