As you proceed towards your retirement, your earning years transition into a period of enjoyment and peace, which must be devoid of worries and anxieties. This period is called segueing from investing to spending when you can draw funds from your savings. This can only be possible if you had planned a worthy retirement investment from the very start of your working career. If you want a financially secure life post retirement, here are some of the best retirement investment plans you should consider.
Bonds Investing in various bonds ensures you a steady interest income at regular intervals that you can enjoy upon your retirement. When a bond matures, its face value is returned to the investors along with any interest that has accrued till date. Bonds carry a much lower risk as compared to the other forms of investment, and thus, also yield low interests. But bonds are safe ways of investment and should not be looked upon as means to grow money but should be considered as a regular interest income source.
Immediate annuities As the name suggests, annuities provide guaranteed immediate income. Rather than a retirement investment plan, it is more of an insurance plan that generates steady income that is more important upon retirement. Immediate annuities prove advantageous to those who cannot stick to their limit of expenditure and have no other monthly income source than Social Security.
Retirement-income funds This is yet another retirement investment plan for those who cannot keep a track on their portfolio. It is more like a mutual fund that automatically invests your money into some diversified portfolios of bonds and stocks so as to ensure a steady income. These income funds are set up in such a way that the investors can have access to their money at any time.
REIT Real estates investment trust (REIT) is a mutual fund that aggregates real estates ranging from apartments to commercial buildings to vacant land. The entire affair from managing the properties, paying out various expenses, to collecting rentals is managed by learned professionals, and the remaining income comes to you, which is a good retirement investment plan.
Renting out properties Renting out the property which is not used may prove to be a great investment plan for a steady income that does not involve any complexities. It has both pros and cons like any vacant property tends to be damaged if not used for a long period of time. Renting out the property will keep your maintenance costs at bay. On the downside, the property can be damaged by negligent renters and you may have to spend more on its maintenance. So before becoming a landlord, keep a track on your expenses that you may have to incur before renting out your property.
These are some of the retirement investment options you should consider other than Social Security.
