6. Mutual funds
Want to invest in stocks and bonds and have a professional pick the investments? Mutual funds could be the answer. Mutual funds invest in stocks and bonds to mitigate risk through diversification. Another option is to invest in a retirement income fund, which is a type of mutual fund offering both a steady income and growth potential.
7. Certificates of deposit
A low risk investment, certificates of deposit, or CDs, offer an interest rate premium. In exchange, the bank or credit union keeps your money for a specified period of time, which can range anywhere from a month to 10 years. When the term is up, you will get your money back plus interest earned. Shop around for the best rates. Set aside money in a CD for when you may need it later in retirement, because you will be penalized if you withdraw early.
8. Real estate rentals
Buying a rental property and pocketing the rental income is one way to get a steady money source in retirement. If you purchase the right property at the right price, you can easily cover the mortgage and taxes and net yourself some extra dollars. The downside? As a landlord, you are responsible for maintenance, or you can hire a management company to do the work for you.
Originally posted at 24/7 Wall St.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
