August 24, 2017

Identifying Safe Investments for Retirement

Planning for retirement can be tricky. You need to generate enough income to maintain your lifestyle without putting your assets at risk. You could just let your money pile up in the bank, but at today’s interest rate, you won’t gain much of a profit.

What other retirement investment options can ensure a comfortable future and provide you with the peace of mind that your assets are safe?

Here are some possible solutions:

Fixed Annuities

If you want a predictable retirement income, then a fixed annuity might be an excellent option.

A fixed annuity is an insurance contract that offers a set amount of income paid at regular intervals for a given period of time or until a major event occurs. This retirement investment option is an excellent way to ensure that a regular stream of income reaches those who are not participating in the workforce. However, they can be a bit difficult to manage given that the cost of insurance features can influence the return you get on your investment.

Invest in Bonds

For individuals who are looking for long-term investments, bonds – such as the iShares Core U.S. Aggregate Bond or Vanguard Total Bond Market — are an excellent place to start. These exchange-traded funds offer a diversified asset base at considerably low fees.

Focus on bonds like those issued by government agencies or powerful corporations because they can be a valuable source of income.

Create a Systematic Withdrawal Plan

The Systematic Withdrawal Plan (SWP) is one of the most commonly used retirement investment methods, but it’s largely misunderstood. The concept behind this strategy is that you build a portfolio of stocks and bonds and withdraw a set amount each month. In time, the plan will generate enough return to substitute your income.

The benefit of a withdrawal plan is that you will always have access to capital, as long as you retain it, of course.

These are just some of the safest retirement investment options you have. Combine them to create a plan that meets your needs without exposing your assets to too much risk.

Because getting the right mix can be rather challenging, don’t hesitate to get in touch with our financial experts at Exemplify Financial Retirement.


 
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