Whatever the purpose for investment, planning for retirement should be considered by everyone. Several factors may motivate you to how to manage your money during your working days, some of them are the concern of where to live after retirement, the availability of any other source of income during retirement or the obligations you would have to meet during your retirement period.
A retirement plan will have to cover several years of insurance, taxes, medical care and other incurable budgets and expenses.
It is necessary that at this point, you have a good plan on how to manage your money in order to avoid going bankrupt or experiencing constant lack after retirement. Some the best investment you can make for retirement are discussed below.
Invest in Annuities
Annuity is a type of contract you make with an insurance company to receive periodic payments over a specific period of time. You will be required to make either single or multiple payments for a period of time, preferably during your working days. This kind of investment will ensure you have access to a passive income after retirement.
Annuity Basics – Types, Pros & Cons:
Most times annuities differ due to tax treatments so it is advisable to seek professional advice when investing in them.
Invest in Fixed assets
Fixed assets such as land and buildings have been shown to increase in value over the years. Unlike other kind of investments which are subject to market forces and the state of the economy at any given time, land usually appreciate in value. So you should consider purchasing houses, buildings and land at target sites during your working years.
Upon retirement you could either decide to sell or retain them; by this time their worth would have considerably increased. For instance you may purchase a house t $10000 and end up selling it for a whopping $150000 in 15 years depending on a number of factors such as inflation and demand which would certainly be in your favor. Also owning a house will also take care of the expenses that may arise with a rented apartment.
Make cash investments
Another way to manage your money after through investment is by making cash investments. Cash investments can be made through your local bank or other financial institutions.
This investment option is particularly good because it is usually low risk. There are different kinds of cash investment such as saving account, certificate of deposit, money market funds amongst others. Depending on the account type, each of them comes with an interest rate redeemable at a particular period of time.
You can also invest in bonds but I have omitted them because of the uncertainty and risk usually associated with them.
Finally, having an investment plan for retirement will always be valuable and can save you from several years of penury or bankruptcy.
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1. Analysing the best investment options by investopedia.com
2. Ultimate guide to retirement by money.cnn.com
3. Best investment for retirement by forbes.com