Retirement is the end goal for most Americans, but many do not know how to continue investing even after successfully reaching their retirement years. Since most conversations around investing are geared towards building a retirement fund, some may stop investing entirely once they’ve reached a comfortable retirement themselves. Financial planning experts have discovered some places where retirees can continue to invest their money in the long run. Whether you’re looking for high risk and bigger rewards, or a more stable and secure approach to your retirement investing strategy we’ve got you covered.
Read about the different ways you can continue investing your money after retirement.
Annuities
For those looking for more stability in their retirement, annuities could be the right option for you. As a safer investment option, annuities can give you a stream of income for the rest of your life. While you may not reach an immediate high payout like there is potential in the stock market, it’s a safer option for those who want guaranteed income at a low cost. Unlike the stock market which reaches extreme highs or extreme lows facing the economy, annuities will remain at a relatively stable axis over time. A popular option for those looking to cover those day-to-day retirement expenses is a fixed index annuity that can provide you with interest and protect you from the lows of the stock market.
Real Estate Investment Trusts (REITs)
Some retirees may already have investment properties that they own and rent out to tenants as a form of passive income. Since social security benefits do not fully cover all of an individual’s retirement fund, one way to combat this challenge is with real estate investment trusts (REITs). REITs can be publicly traded investments listed on familiar stock exchanges to acquire income from public real estate properties. These investment properties could be anything from industrial spaces to residential units, and company-owned office spaces in cities across the country. Those in the finance industry have claimed that publicly traded REITs are liquid and easy to sell or purchase depending on your needs. One major risk factor to consider for real estate is the price fluctuations of properties and high-income taxes. Despite these risks, however, they can provide a source of income for the long haul.
Bonds
Bonds can be an essential investment for those not willing to take the risk of investing in the stock market. Specifically, short-term bonds are rarely influenced by extreme market volatility. However, they can be affected by inflation which is important when assessing their value. With bonds, it’s possible to earn more than a traditional savings account with your local bank, and you can diversify your income in retirement.
Conclusion
If you’ve made it to a place in your life where you can comfortably retire, that alone is something to celebrate. Despite this milestone achievement, it’s essential to have a backup plan in case you or your spouse end up living well beyond your retirement and need that extra cash for support. With strategic financial planning investing can take your savings to the next level in finding long-term security and financial fulfillment.
