Investing is one of the best ways to grow your wealth. However, there comes a time in a person’s life when investing is a bit more difficult than it usually is. After retirement, investing takes on a whole new purpose. Therefore, post retirement investment strategies need to be different too. Otherwise, they will not meet those new investment goals. If you are a senior citizen, or getting close to retirement, this is certainly something to plan for. Learn how to find the best safe investments for seniors using the investing strategies for retirees detailed below.
Consider Fixed Annuities
Fixed annuities provide one of the top investment opportunities for senior citizens. This is because they are perfect for those who live on a fixed income, like retirees. They are also good for those investors who are intolerant of high risk on the stock market. Fixed annuities are investments from insurance companies that act similarly to CDs, or certificates of deposit. With fixed annuity investments for retirees, you buy into securities at a fixed interest rate for an agreed-upon period of time. These are great investments for retirees looking for guaranteed returns that are somewhat more desirous than traditional savings account interest rates.
Invest In REITs
Real estate investments trusts are great investment opportunities for seniors. These investment products pay investors dividends. That is what makes them one of the wisest post-retirement investment for seniors. In addition, they often provide much higher yields than traditional stock dividends. It is always a smart decision to choose investments with a higher ROI. But, this is especially true as you continue to enjoy your time in retirement. REITs are also not correlated with stock market exchanges. Therefore, you do not have to worry about market fluctuations and declines. If you are looking for the best investments for senior citizens post-retirement, real estate investment trusts provide an excellent opportunity to take advantage of.
Practice Total Return Investing
Total return investing strategies are one of the most popular investment strategies for retirees. This is because they are one of the few safe investments for seniors. They are much safer than similar Nasdaq exchange strategies. This type of total return investment strategy is centered around what is known as the 4% rule. The 4 percent rule says that seniors should withdraw 4% of their total assets in the first year of retirement. Then in each year following, that percentage should be adjusted for inflation by raising the total withdrawal amount by the current inflation rate. Investment experts advise investors to skip inflation adjustments when the market performance is poor. Using these strategies, you may be able to avoid investing as a senior citizen and live off the returns from previous retirement investments.
Try Money Market Funds
Money market funds offer some of the best investments for seniors looking to diversify after retirement. A money market fund pools together the investments of many different investors. Then, that total sum is divided up and invested in a variety of conservative securities. Money market fund investments are not insured by the FDIC, unlike clean energy ETF holdings. However, they are required by law to only invest in low-risk securities. In addition, many money market funds seek to keep net asset value at a stable dollar per share. That makes these safe investments for seniors despite the lack of FDIC insurance.
Invest In Income Property
Investing in real estate is one of the smartest investment strategies for seniors. When you invest in rental real estate, you can earn monthly dividends to help cover daily or leisure expenses. Of course, there are maintenance requirements that rental property owners must take care of. However, investing in real estate property is still a smart strategy to earn additional income in retirement. Just be sure to consider all the potential expenses before you invest in income properties. Doing so will help you take advantage of one of the best safe investments for retirees like yourself, so that you can enjoy more time away at luxury retreats.
Investing after retirement gets tricky. But, it is not as hard as many imagine it would be to find safe investments for seniors. As long as you know your investing goals and budget, you will be able to find the best investment opportunities for after retirement. Consider the safe investments for seniors detailed above. These investment opportunities for senior citizens are safe, and pay annual dividends that will help you enjoy your life in retirement. Then, you can spend less time worrying about investing as a senior citizen, and more time enjoying life with your family and friends.