For majority of the retirees, one of the biggest concerns is how to find out a predictable and robust source of income. In order to maintain an affluent lifestyle (which is almost similar to their employed days), they need to know the tricks of generating enough cash. One of the key sources of steady cash is definitely Social Security and there are few others who also have a pension facility with defined benefits. Retired life is when you should focus all over again into the life of an investor. If you could make the best investment decisions during your retired years, there’s no looking back!
Being retired doesn’t stop you from being a long term investor. Moreover, just because you no longer save for retirement and that you’re retired doesn’t mean that you don’t require savings. Do you want to know about the safest investments for a retiree? If yes, read on.
- Fixed annuity
If you wish to get predictable income which is almost similar to pension or Social Security, you can visit an insurance company for a fixed annuity. If you don’t know what an immediate fixed annuity, it is a contract for guaranteed stream of income for a specific period of time. The term ‘immediate’ means that the contract begins paying you virtually instantly, usually within a month of purchase.
Bonds usually mean debt and so if you purchase a bond, this will mean that somebody will you the money and will pay you interest on a regular mode. When you include bonds into a diversified portfolio, the best bonds are those which are normally issued by the federal government, corporations which are financially sound and other government agencies and these can offer you a dependable source of income for the retirement.
- Systematic withdrawals
Due to the fact that you can’t get back your money from a fixed annuity as soon as it starts paying out, you can even put in your money to an investment account towards systematic withdrawal plan. You can establish such a plan in both retirement and non-retirement accounts with the help of a form which instructs the investment company the sum to disburse monthly or annually. Through this option, you can receive the guarantee of an annuity. Liquidity is the key difference between an annuity and a systematic withdrawal plan. The best thing about systematic withdrawal plan, you can get access to money provided it is preserved.
- Life insurance
No, this is not always meant to be a retirement plan but it can certainly be an addition to your income source especially if you’re a retiree who is finding it tough to make ends meet every month. A universal life or a whole life policy is the best policy for this job which lets you assemble cash value according to a specific schedule. People are allowed to access their cash reserve s through a real withdrawal or through a loan. The withdrawals and loans don’t have any impact on the face value of the policy but they reduce the death benefit of the overall policy by a certain amount.
Therefore, if you’re a retiree who has always been concerned about his retirement income, you needn’t fret anymore as you can.