Investments for Retirement


Investment for retirement should be prepared from now. This is because; income in old age is not as big as in the productive age.

So, do we have prepared a pension fund in addition to the amount you will receive from your place of work?

At the stage of preparation we need to know how the funds needed at the time of this retirement later, several people mentioned the needs of pension funds based on the needs of the living cost per month, but there is also a certain amount of waiting at the time of their retirement later on. Well, in general there are two approaches in calculating the pension funds need us:

  • 1. The approach to the cost of living; i.e. the needs of pension funds is calculated with an overview of the magnitude required living expenses while pension in the future.
  • 2. The income replacement approach; i.e. the needs of pension funds is calculated with an overview of the magnitude of the expected earnings retrieved later in lieu of income at this time.

Any approach that will have you selected in calculating the magnitude of pension funds, we need to realize is the pension funds should be prepared, not ignored.

Selecting the right Investment Products
Once we know how much quantity of funds needed at the time of his retirement later, now it is time we determine what investment products pas and prepares pension fund. There are three stages in selecting investment products are right for a pension fund that is to look at the goals, time frame, and choose investment products.

Basically choose investment products shall be in accordance with the objectives to be achieved, in this case is preparing pension funds. After knowing the purpose of the investment is then adjust to the period of the investment.

Investments for Retirement

Here are 10 of the best investments for your retirement:

Rent a Property 
Renting property that you own can provide a stable source income, but there will be need for treatment. Before you buy a rental property, you need to calculate all the potential cost that may be imposed during a certain time frame.

Property investment is a business, not proportion to gain wealth quickly. For those with real estate experience, this can make a big pension investment. If you are not sure with this investment, you can begin to consider reading books about real estate investing, speak with an experienced investor, or join real estate investment club.

Obliges 
When you buy a bond or obliges, you are lending your money to the government or the company. The borrower agrees to pay you interest for a set amount of time. When the bond matures, the principal will be returned to you. Interest income, you can receive from the bond (or bond funds) that can be a source of fixed income pension.

Bonds have quality ratings to provide an overview of the financial strength of the issuer. There are short-term, medium-term, and long-term bonds. There are also bonds with adjustable interest rates, as well as high yield bonds, which pay a higher interest rate, but it has a lower quality rating.

Designing your own Investment Portfolio
One common way to create retirement income is to build a good portfolio of stocks or bonds. This portfolio is designed to achieve long-term revenue to 20 years. When you retire, the income from this portfolio is quite promising. But you need to pay attention to the investment strategy.

Pension fund
Preparing pension funds could be through salary deductions are generally carried out by the company or through mutual funds retirement savings. The investments are managed with the aim of producing a monthly income that is distributed to you. This fund is built to provide all in one package designed to achieve certain goals.

With retirement income fund you can control and access your money at any time. Of course, if you withdraw some money of your principal, your future monthly income will drop further.

Insurance
Annuity is actually a from of insurance benefits. However, this is called the best investments because their goal is to generate the income you need in retirement. With immediate annuity income you insure your future. The insurance company will guarantee income for life or for some other time as agreed.

Take a Safe Investment
You always want to keep a portion of your retirement in alternative investments safe. The main purpose of any safe investment is to protect what you have. However, do not rush to take the decision to make an investment. You need to do a consultation with an expert before making any investment decisions.

All pension funds are advised to have some kind of reserve account (emergency funds). This account should not be included as an asset available to generate retirement income. It is there as a safety net for unexpected expenses that may arise in retirement.

Revenue from Closed
The majority of revenue from the closed funds is designed to produce monthly or quarterly income. This income can be derived from interest or dividends. Each fund has its own purpose, therefore, be sure to do your research before buying.

Experienced investors may find investment funds into an appropriate closed for a portion of their retirement money. Investors should use the less experienced portfolio managers who specialize in these closed funds.

Dividend
Buy stocks that pay dividends. Dividends can provide a steady source of income in retirement. The value of the dividend will generally increase every year (if the company increased the dividend payout). Be careful with big dividends, usually the risk is too great. High yields are always accompanied by additional risk. If there is you are given a more than expected result that means companies do so to compensate for the additional risk that will endure. Remember, do not invest without understanding the risk that would be posed.

Real Estate Investment Trust
Most people invest their funds in real estate investments in the form of Real Estate Investment Trust (REIT). Ni investment instruments such as a team of professionals, who manage the property, collect rent, pay a fee, collected management fees and distribute the remaining income to you as an investor.

Unit Link
A product that is entirely different from a direct investment. In this investment, your funds into the investment portfolio that you choose. You participate in the profits and losses on these investments.

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