3 Simple Retirement Investment Strategies

May 27, 2017

Retirement investment is an intimidating task to pull off. After all, not all of us are well-versed in the complicated world of investment, and putting so much of our savings into something we do not completely understand seems like too much of a risk.


Some take this as a challenge and strive to learn as much as they can about the available investment options. They research online, pour over financial investment books, and even attend lectures about investing money the right way. Others, however, choose to ignore it and simply leave their money to stagnate in their bank accounts.


retirement investment


Understanding the Importance of Retirement Investment

One of the biggest fears that the older generations have is outliving their money. The unfortunate truth is that so many of the elderly are becoming impoverished and living their worst fears.


This is what we seek to avoid by creating a good retirement portfolio that can sustain our needs during the twilight years. Although Social Security is still an integral part of the retirement years, keep in mind that the benefits that this provides are no longer enough. Today, the average amount it can provide is $12,000 a year—does not seem enough to live one, does it?


What makes matters worse is that the cost of living seems to be increasing as the growth in income lags behind. Moreover, healthcare expenses are sky-rocketing to unaffordable heights. It is becoming expensive to be an American that you have to be proactive in securing financial stability.


Determine Your Retirement Income First

An overview of your retirement income will allow you to make better decisions about your money. You need to know the different venues you can get money from and not just take your savings into consideration. These may be your 401(k), Social Security, annuities, and even insurance policy claims. You may also use retirement calculators online to get a better picture.


Once you have determined the approximate amount, you must also take into consideration how you use the money effectively. Find the different methods of increasing your retirement savings, look into the stock market, or even put up your own business with your spouse.


retirement investment


Where Should Your Money Go?

It is important to know that even the wisest people make mistakes in retirement investment. However, there are ways in which you can minimize or avoid them. To very first step in doing so is making an effort to educate yourself about the issue. The second would be to set a realistic could that you work toward.


We have listed three easy-to-understand strategies on how you can invest your retirement money. Through these simple tactics, you can build a solid retirement portfolio—just minus the stress and the hassle.


Find a Suitable Long Term Care Coverage

It is no secret that long term care is becoming a colossal problem among the older generations. People are outliving their money trying to fund the care services that they need. This is why investing in comprehensive long term care coverage is a must.


As highlighted in, How an LTC Policy Secures Your Independence, this type of retirement investment provides the way to achieve one of the most important goals in retirement planning: the freedom to choose. By investing early, you get to be eligible for discounts that can help curb the costs of expensive premiums.


Plan for Longevity

Compared to 50 years ago, people are living longer lives. Because of this, so many older adults are choosing to push back retirement for a few more years. In fact, many are still active in the workforce even after they have turned 70.


Although this may not be for everyone, you might want to look into postponing retirement for a few more years. Many have lived their lives thinking that 65 is the magic number. However, by delaying retirement and choosing to invest your time earning and saving more, you get to have more wiggle room when it comes to your future finances. You get to contribute more to your retirement funds and keep health conditions at bay because of the active lifestyle that comes with working.


retirement investment


Consider Rental Real Estate

Real estate investments and rentals can be tricky, and they do require a lot of research, but they can prove to be a stable source of income during retirement. Bear in mind this is not an easy task to accomplish, and it does take time like any other business.


Before you purchase a property and offer it for rent, you have to have a good grasp of the expenses it will incur. Maintenance of a property can cost money and vacancies are also a possibility. You have to read various sources about real estate investing, and speak with those who have had this type of business for years. Ask for their opinions and advice on how they were able to turn it into a profitable investment. Once you have established your business, you get to have another source of income during your retirement years.


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