When the economy plunges into a recession, are you prepared to weather out the storm with your retirement savings? Retirement is the time to enjoy the money you have earned and the wealth you have grown – not pinch pennies and create tighter budgets. If your retirement wealth consists of mostly savings, instead of income-generating investments, you could be losing money.
“Saving” your money could be losing you money
Why would you lose money in savings? Inflation plays a large role in the value of your dollar. If you are spending more money on items such as gasoline and groceries, while receiving little or no interest on your money, the value of your savings shrinks.
In addition, given that the life expectancy in America continues to increase, how can you ensure that your savings will be sufficient for your entire lifetime? Only through consistent retirement income can you guarantee that you will have sufficient funds even if you live to be a centenarian.
Although having a savings account is wise, it is also better to have your retirement wealth spread out between savings and other investments that deliver retirement income to you each month.
Diversified income among various investment vehicles
Your investment strategies may lean toward safe investments like CDs or Money Market accounts. Both are very safe places to keep money and give a small return on your dollar greater than the traditional savings account. Money market accounts are very liquid and allow you quick access to your money. If you don’t mind placing larger sums into a federally insured CD account for 6 to 12 months, you can receive conservative returns as well that are greater than the standard savings account.
Another great way to bring in retirement income is with real estate investments. If you have the capital available, you can purchase an investment property and rent it out. With the right planning before you buy, you should be able to cover all your property expenses and receive a decent monthly retirement income return on your investment, not to mention good tax advantages to owning investment property.
Another way to invest in real estate that is more conservative and has less risk is with a real estate investment trust, or REIT. REITs are akin to being the mutual funds of real estate. Each investor in a REIT receives a certificate of ownership depending on the amount of the investment. With a larger number of investors, REITs are able to purchase and manage a large commercial real estate portfolio. The profits earned by a REIT are returned to the investors on a regular basis much like dividends. And similar to owning a property outright, REIT members get tax advantages as well.
There are a myriad of ways to generate retirement income that can be catered to your individual needs and risk tolerance levels. Employing professional investment advice about your retirement income is a smart way to maximize the returns on your future planning.
“Saving” your money could be losing you money
Why would you lose money in savings? Inflation plays a large role in the value of your dollar. If you are spending more money on items such as gasoline and groceries, while receiving little or no interest on your money, the value of your savings shrinks.
In addition, given that the life expectancy in America continues to increase, how can you ensure that your savings will be sufficient for your entire lifetime? Only through consistent retirement income can you guarantee that you will have sufficient funds even if you live to be a centenarian.
Although having a savings account is wise, it is also better to have your retirement wealth spread out between savings and other investments that deliver retirement income to you each month.
Diversified income among various investment vehicles
Your investment strategies may lean toward safe investments like CDs or Money Market accounts. Both are very safe places to keep money and give a small return on your dollar greater than the traditional savings account. Money market accounts are very liquid and allow you quick access to your money. If you don’t mind placing larger sums into a federally insured CD account for 6 to 12 months, you can receive conservative returns as well that are greater than the standard savings account.
Another great way to bring in retirement income is with real estate investments. If you have the capital available, you can purchase an investment property and rent it out. With the right planning before you buy, you should be able to cover all your property expenses and receive a decent monthly retirement income return on your investment, not to mention good tax advantages to owning investment property.
Another way to invest in real estate that is more conservative and has less risk is with a real estate investment trust, or REIT. REITs are akin to being the mutual funds of real estate. Each investor in a REIT receives a certificate of ownership depending on the amount of the investment. With a larger number of investors, REITs are able to purchase and manage a large commercial real estate portfolio. The profits earned by a REIT are returned to the investors on a regular basis much like dividends. And similar to owning a property outright, REIT members get tax advantages as well.
There are a myriad of ways to generate retirement income that can be catered to your individual needs and risk tolerance levels. Employing professional investment advice about your retirement income is a smart way to maximize the returns on your future planning.
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