For seniors and retirees, it’s likely you’ve been saving up money for most of your life. Perhaps you set aside money from each paycheck either in an employment-sponsored 401(k), stock options, or one of many different types of individual retirement accounts (IRAs). While you might have been saving for the better part of your life, you don’t want to stop once retirement age comes. Unexpected medical costs, increased taxes, natural disasters, and more can cause a financial burden with little to no preparation time.
It is in the best interests of seniors to continue investing their money even in retirement, as a means to guarantee they continue saving and earning money. With some sound investments, you can even be living a more comfortable life as a retiree. Here are five investment options that you may not have considered.
Real Estate Investment Trusts
Real estate can be a lucrative investment for investors of any age, especially for those that are also willing to be property managers and landlords. However, if, at your age, you’re not interested in taking on either of those roles, a real estate investment trust (REIT) can allow you to still invest while being hands-off.
REITs are a safe way for individuals to invest in large real estate productions. These real estate trusts are often large-scale operations that produce notable amounts of income, as they are not developers for resale purposes. Rather, they purchase and develop properties to add them to their investment portfolios.
These make for a great investment option for seniors, as it allows you to become “part” of the ownership—earning a share of the income produced without actually partaking in the process of managing and buying real estate.
Annuities
A contractual agreement made between you and an insurance company, annuities are fixed contracts that make for solid predictability and little worry. The contract signed between you and the insurer will pay you a fixed income on a monthly basis for a specified period of time.
The benefit to these contracts is that it provides you with an immediate, set income that will be guaranteed for the years you have outlined. (This can be a fixed number of years, your entire lifetime, or even yours and your spouse’s lifetime). It may be worth your time to consider this agreement, along with the contract you are signing, as some fees might be applicable dependent on the insurer; dependent on the contract signed, your tax liability might also be affected. Further, market declines can affect the worth of your incoming income, which is something to consider. They are only transferrable to heirs if you have one with a death benefit.
Precious Metals
With an ever-changing market and trade wars taking place between countries, there is worry concerning the long-term condition of the U.S. Dollar (USD). To hedge against possible degradation of the USD, it is smart for investors to begin considering precious metals (again). Once a contender against the USD, precious metals such as gold and silver have long been marketable investments that people have made financial gains from. With a long and rich history, precious metals have followed the trajectory of human growth, from the Bronze Age all the way up to their implementation in our current technology.
Precious metals make for a sound investment for seniors due to their low volatility and continued market strength. By setting up a basic precious metals IRA, you can begin investing in precious metals, from minted gold coins to bars of palladium, storing them in your portfolio to gradually accrue interest. And, if an IRA doesn’t pique your interest, you can still invest in precious metals, storing them either at home or in some secure location to have “unbanked” assets, free from the USD.
Municipal Bonds
Issued by the state and municipal governments, municipal bonds are better known as “debt securities.” At their core, municipal bonds are loans made to local governments, which are then utilized for public works purposes.
The advantage of a municipal bond is that any interest earned is free from income tax payments. Furthermore, dependent on the state of issuance, any income earned might also be exempt from state taxes. Municipal bonds also tend to accrue more interest than their U.S. Treasury bonds counterparts. With higher yields, shorter maturity, and tax-free possibilities, municipal bonds are a notable security that can pay off well.
Dividend-Paying Stocks
While not as safe as some other securities, dividend-paying stocks can make for notable market gains. Providing investors a reasonable balance of both growth and income, these provide a noteworthy means for investors to begin earning money, even against some lackluster or vacillating market trends.
High dividends produced by these stocks will often help to fight any declines faced in the stock market, allowing investors to continue receiving interest earned even while the stock market fluctuates. Furthermore, these types of stocks will continue to perform better even under bear markets. For those investors solely interested in preserving their finances during their retirement years, a dividend-paying stock is a smart option to add your portfolio. Not only will it allow you to continue earning income throughout retirement, but it will also help you fight possible inflation for the future to come.
There are many investment options available for seniors looking to secure their assets throughout their final decades, but these are some of the best options to consider. If you have any questions concerning potential investments, especially the precious metals market, our staff is more than happy to discuss all of them, helping you to protect your finances while continuing to earn income from year to year.
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