One of the big issues that many couples face in retirement is how to acquire enough money. Retirement income is vital for most people because social security is not going to be enough, and some people do not have the benefit of having a pension. This is why it is good to plan ahead and consult with a retirement planning advisor so that when the time comes you won't be stuck without enough income to either sustain your desired lifestyle. Here, with that in mind, are a few considerations that you should discuss with your financial planner.
Bonds, Bonds, Bonds
Bonds are one of the safest investments (especially when it comes to retirement) because, unlike stocks, they are much less volatile. Bonds are intrinsically different than stocks in that they have are not equity in a company, they are instruments of debt. You can invest in conservative bonds (such as municipal or governmental bonds) or you might look to more risky bonds (corporate bonds). However, they overall have a much more stable outlook than stocks. Many retirees would be wise to speak with their advisor and ask them about what sort of bond they should invest in: a bond fund, a single bond, a mix of governmental or corporate.
Real Estate Investment Trusts
Another fun idea to consider is investing in a Real Estate Investment Trust. R.E.I.T.'s (as they are commonly called) are one of the most popular ways to generate passive income in an investment portfolio. These companies are comprised of many different investments (normally they invest in some sort of real estate based venture, such as a strip malls or apartment buildings) and the income that they gather is than dispersed among the investors. You should definitely look into the various real estate investment options for retirement income.
You should ask your advisor if you should invest in something such as commercial real estate or if you should focus on something such as rental property based real estate income based R.E.I.T.'s. The tax benefits of one might be more attractive for your own personal situation, which
Stocks with Large Dividends
Finally, the main way many people look to collect retirement income is to accumulate a holding of blue chip stocks that pay high dividends. You should ask a retirement planning advisor how to allocate assets that will pay dividends in the future. So, you will want to choose a stock fund that holds high paying dividends that will pay out a monthly dividend that will provide you with some nice retirement income.
When my card was declined at the grocery store a few months ago, I realized my financial situation had hit rock bottom. Instead of ignoring the problem, I decided to meet with a financial counselor to see what I could do to make things better. I talked with him about how to handle unplanned expenses and how to budget for my day-to-day life. It was incredible to learn more about money, and now I can proudly say I am living within my means. I decided to make this blog for anyone that struggles with financial planning so that you can turn things around.