Best Options for Retirement Investing

Best Options for Retirement Investing

 

People who are looking forward to their retirement may check some of the best options for retirement investing. Though they may have some money for their old age, they may enjoy a little more of life if they will make sound investments that will supplement their retirement plans and benefits.

Immediate Annuities

One of the best options for retirement investments includes immediate annuities which can provide people the guaranteed income that they deserve. However, they may expect the guarantee to be fulfilled by the financial strength and stability of the insurance companies that are offering it. People invest their money in form of a lump sum in exchange for a monthly income that the insurer will have to pay as long they live. However, in case people die after the contract has been paid; the insurance company will have to keep the money that has been left. Those who are able live for a very long time will enjoy the monthly income that the company has to pay even if it exceeds what has been paid for.

Total Investment Returns Portfolios

People may think of retirement investing in the form of a diversified portfolio of stocks as well as bond index funds. They may need the advice of a financial expert if they would like to invest in such. People may earn a considerable amount from their investments over time which they can withdraw on an annual basis and on a prescribed withdrawal rate of about 4 to 7 % each year.

Retirement Income Funds

Another way how people may earn through retirement investing is for them to put their money into retirement income funds. They follow the same procedures as the total investment returns portfolios. The company gives them their money over a diversified portfolio consisting of stock and bond funds. The difference between these types of investments is that people are in control of the principal amount that they have invested. They are given access to their money and they can withdraw anytime that they need it but their income will decrease as they withdraw from the principal amount that they have invested.

Bonds

Those who are selecting ways for retirement investing may consider buying bonds. They are actually loaning their money to the government or to some corporation. The borrower will have to pay a determined interest rate for the time that they money has been lent. People get back their money back when the bond reaches its maturity date. This investment may also provide investors a steady income when they retire.

Real Estate Investments Trusts

People may also want to consider REITs for retirement investing. They put their money into some sort of a mutual fund that will be used for the development of real estate. The company will manage the property and do everything that is necessary such as collecting rent and paying for the expenses and after all has been settled, they distribute whatever income has been derived to all of those who have invested.

Other retirement investing options

There are still varieties of retirement investing options that people can select from. These may include investing in properties for rent which can provide for a steady stream of income. However, people will have to own and manage their real property. People may also go for variable annuities with lifetime income rider. Insurance companies may be able to include other investment options over the annuity investment that they are offering. However, investors will have to pay for additional fees for the other annuity products that are added.

Safe Investments

Although there are several options for retirement investing that people can consider, they need to make sure that their investments are safe. Risks may be part of any type of investments but at least people do not go out blindly putting their money into investments that may be too risky. The goal of putting money into retirement investing is for people to have something more when they retire.

People may not really have as much profit as with the high yielding high risk investments but at least, they get a steady flow of income from their investments. They do not have to worry so much about losing their money in the end and they will have something to look forward to.