3 Investment Options with Retirement Money
Every working employee awaits the time when he would reap the lump sum fruit from the decades of hard work. Although admittedly, finishing our tasks in our workplace also gives meaning to our lives, we still look forward to the days when we would have time for everything we love to do. We all love to retire.
But should retirement mean that we should already stop earning? The answer should be in the negative.
We could still continue to multiply our retirement money through many ways while cruising, traveling, or spending our hard-earned vacation.
Here are a few investment options which Pacific Sunrise Home opines that a retiree could invest in, to save up and continue earning money:
- Treasury Bonds. This option is the safest among all other retirement investment options. They have a fixed interest rate and are interest-bearing loans you make to a company or government. Despite the fact that they offer relatively smaller long-term returns than stocks do, you are guaranteed that your money grow over time.
- Mutual Funds. Unfortunately, our retirement funds will be subject to inflation through the years. Hence, investing a part of our retirement funds in equity-backed products could help mitigate such effect of inflation through mutual funds. It provides favorable tax terms for the investor as well because debt funds are taxed less compared to other investment routes like bank deposits. Besides, this investment option is also more liquid.
- Bank Fixed Deposits. The safety and fixed returns that retirees can take advantage of are reasons why investing in bank fixed deposits is a good investment choice for us, retirees. Its hassle-free operation and flexibility in the terms of tenure make it even more popular. If you take this route, you just need to make sure that the term you choose would be convenient for you and would not go for a longer period.
Nonetheless, you should never forget to set aside a sufficient portion for your health care or future elderly care. Indeed, insurance and other health care programs you have already paid while working could help you during emergencies, but it may still be not enough. You wouldn’t want to become a burden to anyone, right?
Hence, before investing in any of the money-earning ways mentioned above, make sure to pay a program for your Residential Care Facility in California.