Do you have money to invest but don’t know how to go about it? Do you want to know where to invest money now for retirement and best returns? Then read on. Anyone in their proper mind must be asking themselves time and again “where to invest money now for retirement?” The wise ones know that good times don’t last, so they plan ahead.
Rather than live in penury or want while in retirement; smart individuals plan for their retirement ahead of time. If that’s the case, then any of the investments you make must be geared towards the income-oriented types.
Why you need to decide where to invest money for retirement
Why are you investing for retirement? Well, there are three main goals when investing for retirement. One of these is to keep your savings safe so it will be available when it is needed.
Another is to keep your investments growing; so they will stay ahead of inflation and accrue in hefty sums in the future. And last is to invest in ways that minimize taxes and fees. Having said this, below is a list on “where to invest money now for retirement” that satisfy one or more of the three criteria above.
Where to Invest Money Now for Retirement and Best Returns
Employer Investment Plans
If an employer company offers investment plans such as 401k or 403b, then this is a good opportunity to start with. Such plans appropriate a portion an employee’s salary for investment by the employer company to mutual funds.
One advantage of this plan is that the money contributed for the account is not tax-deductible. The money that will accrue is not subject to taxes until the year of retirement. Also, an employer investment plan is an automatic investment where all the money and its earnings are transferred directly to the employee’s account.
Diversified Investment Portfolio
One of the most common ways of investing is through stocks and bonds. The list on where to invest money now for retirement is not complete without including investments on stocks and bonds. By creating a diverse portfolio out of these investment classes, an investor can achieve a good deal of return in the long run. These two asset classes alone have proven track records in the market.
When dealing with stocks and bonds, it is best to hire professional managers. Working with an asset manager can greatly improve chances of winning in trades or acquiring profitable shares because they are professionally equipped for the job.
Moreover, an asset manager can give advice on how to diversify the investment portfolio to lessen risks and to maximize return. Aside from stocks and bonds, an investment portfolio may include certificates of deposits (CDs), gold and other precious metal investment, mutual funds, savings accounts, etc.
Annuities are life insurances. Under this plan, investors pay a series of equal payment or a lump-sum payment; in return the insurance company will pay back the accrued money with interest at a predetermined future or at retirement on a monthly basis. Annuities usually are tax-deferred, that means earnings are not subject to tax deduction.
Also, some annuity plans may include a death beneficiary where they pay some amount to an investor’s beneficiary in case of death. Investment on annuities is best if it will be kept for a period of 15 to 20 years.
Real estate can provide great deals of return if planned carefully. Owning an estate and renting it can provide steady cash inflow monthly. However, expenses are incurred on maintenance, taxes, and other unanticipated expenses. In the long run, they make for a good retirement investment.
Investment on property can also be in the form of real estate investment trust or REITs. REITs are very much alike with mutual funds, only on real estate rather than shares. There are managers who manage the property, pay expenses, collect rents, collect fees for doing the job, and distribute the remaining profit to the investor.
The investments above are not the only option available when it comes to investing for retirement; but they are a good way to start. So start investing money for your retirement today; and you will live a peaceful and fun filled life in retirement.