Looking for retirement investment options? There are different types of investments. Stocks, mutual funds, bonds, savings and money market funds. However, not all these investments are good investment options for your retirement. During retirement, you need an earning asset wherein it helps you to create passive income. You should aim to acquired passive income generating assets. What I mean is that you should earn money even without working. It is important to create an investment plan and in your investment plan, you should create one for your retirement.
Maybe you asked, what are the common retirement investment options? You should analyze the types of investments that are good for retirees. Since retirees can’t afford high risks, they usually invest in low risk types of investments.
You should look for safest investment wherein you can assure that you can still make money during your retirement years. Safe and low risk investments are good retirement investments.
Retirement Investment Options
The table below shows how to allocate your investments during your retirement. Therefore, you will only know the best investments for retirement if you know how to properly allocate your assets. I can’t say that bonds and savings account are good retirement investments, because I prefer to allocate my assets since I started investing my money until now and my plan is to allocate them until my retirement comes.
|Investment Vehicle||Asset Allocation|
|CDs/T-Bills and Short/Medium Term Bonds||10%|
|Equity Mutual Funds and other High-Growth Securities||20%|
|Balanced Mutual Funds and Blue Chip Securities||20%|
|Real Estate Properties and/or Fixed Income Long-Term Bonds||20%|
As you have noticed, in your retirement years, you can still invest in high risk types of investments such as equity mutual funds & other high-growth securities. You can invest 20% of your total assets in balanced mutual funds and blue chip securities. Business ownership and real estate are also good retirement investments. Refer to the table above on how much percentage of your total assets should invest in real estate and business ownership.
Note, that if you retire early, you should allocate your total assets based on your age. As a guide, you can follow the suggested asset allocation strategies by age such as asset allocation for investors age 30 and asset allocation strategies for investors age 45.
What about you? How do you usually plan your retirement? Which types of investments do you think is the best retirement investment? Share your opinion below. Share this with your friends.