Think your investing days are over when you retire? Think again. After amassing your retirement portfolio during your working years, you still must invest your money to keep it growing and providing income in your golden years.
Especially now with inflation soaring to 9.1% in June, the highest level since 1981, you are going to need some extra cash to cover living expenses. But investing during retirement is much different than in earlier stages in life, when income is still coming in. In retirement, you want to avoid risky bets and opt for safer investments offering steady, although not spectacular, returns. (See record inflation driving up prices for these 40 household items.)
24/7 Wall St. created a list of eight investment strategies for retirees based on a report produced by financial technology company SmartAsset, What Should Retirees Invest In?
Bonds, certificates of deposit, and mutual funds can provide the income you need as a retiree while insulating you from the rollercoaster ride of the tumultuous stock market. The goal is to preserve your nest egg and not lose a large chunk if the market tanks.
Yet that does not mean you cannot take some degree of risk. Investing in stocks is fine, so long as you put your money in conservative, dividend-yielding plays. In general, retirees should look for investments that provide a reliable income stream that also protect their hard-earned savings from any deep cuts. Have $100,000? Here are the 20 best ways to invest the money.
Click here to see the 8 best investments for retirees.
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A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
