Friday, April 21, 2017, AM | Leave Comment
As a retiree, income stability is one of the most important things you should consider.
You ought to diversify your retirement portfolio to supplement the individual retirement account, pensions and 401(k) plan. Making a wrong investment puts you at risk of running out of money.
Below are some smart investment plans that have proven successful among many retirees.
Buy a second home
Real estate is one of the smart ways to invest your additional funds. Organizations like Foxfire Realty, Inc. give individuals the opportunity to own homes at an affordable cost.
You can invest in one or two homes and rent them out to boost your cash flow. Real estate can be risky, but with research and consulting, you can acquire assets that will give you financial freedom. Just ensure your asset is in a fantastic place to work, live and retire.
This is where you make an upfront investment with an insurance company, and in return, they pay you a specified amount of income for a set period or even for the rest of your life.
Annuity incomes can be immediate, deferred or fixed deferred. Take time to fully understand fees, commissions and other features before investing in annuities. Be keen to check how they will affect your tax liability.
Real estate investment trusts
This is where you invest in mortgages or direct equity in various properties. You will get paid in form of dividends.
Earnings from real estate investment trusts are much higher compared to earnings from stock dividends. Another advantage is that they have no link with stock exchanges and thus, are not affected when the general stock market goes down.
Treasury inflated protected securities (TIPS)
TIPS are a form of Treasury debt. However, TIPS are different in that they pay interest as well as extra principal to cater for inflation. They are available in terms of 5, 10 and 30 years. When they mature, you will get the higher value depending on the consumer price index.
Peer to peer lending
Peer-to-peer lending is an online investment that brings together investors and borrowers. Some well known peer-to-peer lending platforms include Prosper and Lending Club. The investment pays a high interest rate compared to stock market investments.
The best way to invest in retirement is to have a variety of assets in your portfolio. With a diversity of payouts, you will have enough income to sustain your livelihood and leave a legacy for the younger generation.Facebook.com/doable.finance