Thursday, December 1, 2016

5 Tips For Making Smart Investments After Retirement



Once you have retired, the key to investment is protecting your nest egg. There will not be any time to make enough money to build a second nest egg. 

Therefore, it is not how you invest your money so much as what you invest your money in. With that in mind, the following are five tips to invest your retirement funds while protecting your money at the same time.


Park Your Money in an FDIC Insured Account


Any money that is not invested should be kept in a bank account that is insured by the Federal Deposit Insurance Corporation. 
There are other places to keep your money while not in use, a brokerage account is one example, but you want to have the security of a government backed account. 




Most commercial banks have accounts such as these. The State Bank of Cross Plains is one example. 

Buy Short-Term CDs


A certificate of deposit offers security and pays you interest on your deposit. You don't invest your money for too long a time, so your retirement funds are not tied up. 

You can determine what length of time is best for you, but a few months to a year is often a good choice for someone who is retired.

Invest In Stocks That Pay Dividends


The stock market can be risky, and for people with limited funds to invest, it may not make sense. However, if you decide to buy stocks, focus on those companies that are have a long track record of paying dividends. 

You are not looking to buy and sell stocks for a profit in your retirement years, but instead, are looking for a consistent return. 


Corporate Bonds


These types of bonds are a way for a company to raise cash. Some of them can be risky, but like stocks, you want to buy from large, established companies. 





You also want to buy short-term bonds since you are in retirement. You can also buy into a mutual fund that has a portfolio of corporate bonds. This takes much of the risk out of purchasing any single bond.


Delay Collecting Your Social Security


You become eligible for Social Security at age 62, but if you wait until age 65, you can collect your full amount. 

However, if you delay collecting your benefits until age 70, you will get an additional eight percent more in your check for each year after 65 that you delay filing for benefits. This is a large return on your investment.

The tips listed above should be helpful to you. In general, you need to focus on investments that offer security for your retirement funds.

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