Some important investment options like fixed annuity, bonds, life insurance and equity among others can help you in fulfilling your goal. The details...
A regular income is a big matter of concern for retirees. They try to find out the best ways through which they can earn regular income to maintain their lifestyle. Of course, social security is a main source of getting cash for retired people. I’m sure you must also be thinking how you will manage your expenses after retirement. From where will you fulfill your basic needs? Who will help you in maintaining a healthy lifestyle?
Instant fixed annuity
It may be a new term for many people, but if you really want to secure your future after retirement through a pension then you must go to an insurer for an instant fixed annuity and get a contract for the fixed income stream for a particular time.
You are likely to receive the payment in a short span of time.
If you purchase a bond, it means somebody owes you money and paying you its interest regularly. When you bring it together into a proper portfolio, the safest bonds are those issued by reputable companies, government institutions and others which can become an important source of income after retirement.
It is not really a retirement plan, yet it can also provide additional benefit to retirees. The safest plan is a whole life plan which can assist you in building up the cash value. Customers usually acquire the cash through loans or periodic withdrawals. However, loans and withdrawals can reduce the death benefit of the plan.
With the help of a systematic withdrawal plan, you can easily invest your money, which you had received from fixed annuities. Such a plan can be recognised in non-retirement and retirement accounts with a form, including the details of the investment company and the amount that will be distributed quarterly, monthly or annually.
Dividends are different from bonds. The stocks signify the ownership and company owners can get regularly-planned dividends. But if a company gets into any financial problem then dividends can be stopped. Even stock markets may also witness a big fall which can have an effect on your investments. That is why it is advisable to buy stocks from trustworthy companies after checking its dividend payment records.
Whether you are retired or not it is advisable to review prices of property you own every year. You must check the market rates to offer the same on rent or for selling. But if you are not getting your rent on time, then it is a matter of concern. It is better to check everything properly.
The best thing about the above options is that they match your personality and needs. However, choosing the right method is totally up to you, but if you feel confused, then it’s better to consult a financial planner or advisor for the same.
Photograph: Garry Knight/Creative Commons
Naval Goel is CEO and Founder, PolicyX