Friday, September 6, 2013

The 5 Smartest Investments To Make After Retirement

When it comes to investing, the level of risk you can take and your age have somewhat of an inverse correlation. As your age goes up, you want to take on less risk. This never rings more true than after you retire. At this point in life, you're living off of the wealth you've accumulated while still trying to generate more through investments. It's important to be savvy, and that's why we've come up with the five smartest investments for after retirement. 

Dividend-paying stocks are a beacon of safety. These are typically offered by companies that have strong roots in the economy and aren't likely to collapse in a hurry. The lack of expected rise in value is a big part of why these companies pay dividends, but it's great to have that security and still see a return just for holding stock. You don't necessarily want these to be a large part of your portfolio, but having a few is a great idea. 

Foreign assets are also a great pick. In the long run, the shift to a global economy means that more assets are overseas than ever. As the US economy and the dollar start to see parity with the output of other nations, the relative value of those foreign assets is going to see an unprecedented jump. By holding a small amount of foreign assets and increasing that share as the market appreciates, you'll have security. 

Companies that fill a need are also a wise sector to invest in. An obvious pick here is medical companies, but there are other companies that also offer products that will always be needed. Take home security, for instance. Most people live alone, so home security will always be in demand and is unlikely to be replaced in the market. The best alarm services to monitor are the ones that have an established customer base.
 
Fixed-rate assets are another sound investment. Think securities and fixed-rate bonds. Anything that pays a guaranteed amount of money is a strong pick in a retirement portfolio. 

Boom industries round out the list, although this one requires prudence. Getting in front of the technology boom of the last several years would have been a wise position, just as getting a jump on investing in healthcare would be wise now. 
Investing after retirement doesn't have to be tricky—just stick to the same goals you've always had, and always consult with a financial professional.


1 comment:

  1. I also suggest investing in dividend paying stocks. These companies are usually more mature and stable which provide a steady stream of income. The companies that pay dividends on a regular basis are consistently making a profit.

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