Safe Long-Term Investment Ideas for Retirees
Retirement is the stage of life when a person does not have the option to earn most probably. Moreover, that person is freed from all the burden of working for survival. The retiree has to rely on the savings he or she has made during their working days. This can be safer if one has done safe investments. But what comes next is more challenging if one has not done long-term investment. There are many safe long-term investment ideas for retirees through which a retiree can lead a peaceful life.
A wise will always think of a better and secure future. In addition, the person shall take all the precautionary measures to lead a secure and peaceful life after his or her retirement. For this, one would always think of a ‘safe long-term investment ideas for retirees’ which do exist. The person only has to do is make the investment to the right place and at right time.
Dividend-Paying Stocks: Safe Long-Term Investment Ideas for Retirees
Many well-known companies pay dividends in accordance with the stocks which are higher as compare to what one gets on safe investments. The payment includes certificates of deposit and U.S Treasury securities. However, stocks are not as secure as income securities but they do have the potential of capital gains.
This factor provides the dividends higher rate of growth and income. Moreover, a high dividend shall be enabled to receive income on their stock even though the price of a stock fluctuates. As compare to growth stock dividend-paying stocks do more in a bear market, since, investors want to move attention from growth to income.
Peer to Peer Lending: Safe Long-Term Investment Ideas for Retirees
Peer to Peer Lending is commonly known as P2P and has been boosting up since it was introduced. It basically provides the match of borrowers and investors for the loan which would be advantageous for both. Furthermore, it allows lending without using a bank as an intermediately. The largest platforms for Peer to Peer Lending are Lending Club and Prosper. Moreover, many investors make their investments on Peer to Peer lending as compare to stock markets.
Municipal Bond: Safe Long-Term Investment Ideas for Retirees
Municipal bonds are debt securities provided by the state or municipal government with other various agencies. The advantage to this is that the income one earns is tax-free for federal income tax purposes. Moreover, they also provide exception regarding state or local tax if one is a part of the state where the municipal bonds have been issued. Twenty-year municipal bonds are paying an average of about 0.2 percent which is higher than thirty-year U.S Treasury bond.
Annuities: Safe Long-Term Investment Ideas for Retirees
Annuities basically involve investment contract between an interested person and an insurance company. They have various forms and mostly provide with the guaranteed return at the stated rate. Moreover, these annuities can be constant or variable and the return rate may affiliate with the performance of the stock market. However, going for annuities can provide a person advantage in this regard. They reduce the risk if there would be any market decline.
The feature of some annuities can be complicated so one should always take time before buying one. Also, it is very important on the factors that how an annuity would affect one’s tax liability.
U.S Treasury Notes and Bonds: Safe Long-Term Investment Ideas for Retirees
The U.S Treasury notes and bonds provide a good deal as compared to the certificated of deposit and money market funds. They are the best safe long-term investment ideas for retirees. Treasury notes are U.S government debt securities with maturities between two and ten years. They currently pay almost two percent per year. Moreover, the Treasury bonds have thirty years and running in excess of 2.5 percent. The U.s Treasury securities can be purchased through the U.S treasury portal Treasury Direct.
Treasury Inflation Protected Securities: Safe Long-Term Investment Ideas for Retirees
Treasury Inflation Protected Securities are also known as TIPS and they are another form of U.S Treasury debts. TIPS come in the denominations as small as dollar 100 and in case of five, ten and thirty years. Annually inflation adjustment and records depend upon the changes in the consumer price index. As compare to other Treasury securities treasury inflation protected securities provide less interest rate. This is because of the inflation adjustments and they produce more attractive results.
Furthermore, treasury inflation protected securities are also purchased from Treasury direct. Treasury Inflation Protected Securities are one of the safe long-term investment ideas for retirees.
Real Estate Investment Trust: Safe Long-Term Investment Ideas for Retirees
Real Estate Investment Trust is one of the safe long-term investment ideas for retirees. It basically requires the investment made in mortgages or direct equity positions in various properties. Moreover, they pay the dividends to the investors which yield more than stock dividends. Furthermore, when there is a decline in the market, making investments to REITs would be a good option. The reason behind that is REITs are not correlated with the stock exchanges.
One cannot work for their living their whole life. They would get retire at some stage of their life and should always loom upon to that. A wise person always plans for the future, therefore, every person should plan for their retirement days. Retirement is not something bad or something people should feel sad about. If the investments have been made right, planning has been thoroughly or mad savings, then one is saved. A person in his or her working days should always save money no matter what the present situations are. The life is so unpredictable, that one can never estimate their lifestyle living in the moment. Hence, it is highly recommended to save money and utilize it wisely.
One way a person can lead a peaceful life with all the basic needs fulfilled is to make investments. If one has saved enough money then there are many safe long-term investment ideas for retirees, where that person should invest. These investments would be helpful in the days of retirement and one shall be able to lead a fine life ahead. For more related articles please visit Online Money Investment.