Retirees often find themselves in a bit of a turmoil. There’s always a potential for financial setback, despite numerous investments in retirement savings instruments. Nowadays, people live longer and it’s very hard to maintain consistency in profit.
To remedy this situation, we’ll give you some low-risk investments that you can utilize in 2019.
Table of Contents
Best Retirement Investments
1. Dividend Stocks
Dividend stocks are great if you want to maintain a stable dividend income, regardless of performance. Retirees should look for stocks with a consistent track of raising dividends, with the dividend yield minimum of 4%. These are usually gigantic companies, such as Coca-Cola, Cisco, and Google.
2. ETFs and Mutual Funds
Those of you who aren’t keen on buying stocks will probably go for mutual funds or ETFs. During the past couple of years, ETFs have proven to be less risky than standard stocks, which is great for retirees. Warren Buffet has one great tip for ETFs. He says that you should invest in low-cost S&P 500 index funds as part of retirement planning.
3. TIPS
Treasury Inflation-Protected Securities protect you from inflation, as the name implies. These are one of the less-risky investments, backed by the government. Simply put, their value increases with inflation and is measured by the CPI (Consumer Price Index). As for the price, TIPS can be bought for a minimum of $100, which is really cheap.
4. REITs
Investing in real estate is one of the best things you can do as a retiree. Real Estate Investment Trusts allow you to buy shares in commercial real estate, such as hotels, office buildings, and apartment buildings. REITs usually buy a property for a particular income and often pay 90% of the taxable income to the shareholders. This guarantees a steady, stable, and long-term cash flow.
Final Words
Not every investment plan will suit your needs. Think about your financial needs and how much are you willing to invest. TIPS are great for those who want a steady, yet modest income. If you want a higher income, you should go for mutual funds or ETFs. Source: zacks
