Posts Tagged ‘investment advice’

Investing in Retirement Reminders

Over the years, the same mantra has been beaten into your head time and time again: save as much as possible for retirement.

But what are you are supposed to do when you finally retire? How will you treat your money?

Investing in retirement is a great idea. Not only can this help you earn more money during this period of your life, but it will put you in position to leave something behind to your children or other beneficiaries.

A Few Things to Remember

First and foremost, you should not invest your money during retirement the same way you did earlier in life. Keeping the same investment mindset could quickly lead to added financial stress – which is not something you need at this point.

While there is no way of knowing how long you will live, plan for your retirement savings to last 30 years or longer. To make this happen you cannot afford big losses. During your 30’s and 40’s there was nothing wrong with riding the ups and downs of the stock market. In retirement, you are no longer afforded this opportunity. Instead, you have to be careful of taking on too much risk.

Index funds are common among retirees interested in investing. These have a lower cost, as compared to other investments, and require less monitoring.

Are you looking for an even safer investment? Consider certificates of deposit (CD). You don’t have the chance to earn nearly as much money, but at the same time you are not taking a big risk. With CDs you are investing and earning while also playing it safe.

Here are three pointers to keep in mind if you are thinking about investing in retirement:

  • Know your money including how much you have and what your budget entails.
  • Assess your risk tolerance.
  • It is better to be safe than sorry – big losses can kill your retirement savings.

Some Simple Retirement Investment Advice

The earlier you begin investing your money the better off you will be in retirement. But what happens when you finally decide to retire and no longer receive the same monthly income? At this point, some people stop investing and start spending. However, there are seniors who realize that investing in retirement is a great idea.

With the right retirement investment advice you can continue to grow your money – just as you did in the earlier stages of your life.

Investing as a Senior

Just because you are a senior does not mean you have to stop investing. The right plan can go a long way in making your retirement funds last longer.

When it comes time to invest, here are a couple options to consider:

1. Index fund. Not only do these have lower costs but they do not require a lot of your time. These funds track a benchmark – the Standard & Poor’s 500-stock index is one of the most popular.

2. Certificates of Deposit (CD). Are you risk averse? If so, this type of retirement investment is right up your alley. The money earned on your investment will be small, but there is no risk involved. If you are afraid of taking risks with your money and are only worried about earning a small amount on your investments, CDs are the perfect choice.

Need more retirement investment advice? In many cases, you can get all the help you need by asking yourself a few simple questions:

  • How much risk am I willing to take?
  • What does my current retirement budget look like?
  • How long will my retirement funds last?

The answers to these questions will help you determine which investments are best for you in retirement.

With the right retirement investment advice you can continue to grow your money, even after you are done working.


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