Retirement Investment
Solutions
Retirement may be a long way off for
you – or it might be right around the corner. No matter how near or far
it is, you’ve absolutely got to start saving for it now. However,
saving for retirement isn’t what it used to be with the increase in
cost of living and the instability of social structures with rapid
emergence of nucler families. You have to invest for your retirement,
as opposed to saving for it!
Overall, there are three different
kinds of investments. These include stocks, bonds, and cash. Sounds
simple, right? Well, unfortunately, it gets very complicated from
there. You see, each type of investment has numerous types of
investments that fall under it.
There is quite a bit to learn about
each different investment type. The stock market can be a big scary
place for those who know little or nothing about investing.
Fortunately, the amount of information that you need to learn has a
direct relation to the type of investor that you are. There are also
three types of investors: conservative, moderate, and aggressive. The
different types of investments also cater to the two levels of risk
tolerance: high risk and low risk.
Conservative investors often invest in
cash. This means that they put their money in interest bearing savings
accounts, money market accounts, mutual funds, US Treasury bills, and
Certificates of Deposit. These are very safe investments that grow over
a long period of time. These are also low risk investments.
Moderate investors often invest in
cash and bonds, and may dabble in the stock market. Moderate investing
may be low or moderate risks. Moderate investors often also invest in
real estate, providing that it is low risk real estate.
Aggressive investors commonly do most
of their investing in the stock market, which is higher risk. They also
tend to invest in business ventures as well as higher risk real estate.
For instance, if an aggressive investor puts his or her money into an
older apartment building, then invests more money renovating the
property, they are running a risk. They expect to be able to rent the
apartments out for more money than the apartments are currently worth –
or to sell the entire property for a profit on their initial
investments. In some cases, this works out just fine, and in other
cases, it doesn’t. It’s a risk.
For retieremet account you can be
aggressive with your not more than 25% of account value by active
investment in stocks rest you should diversify in bonds, mutual funds,
certificates of deposit, and money market accounts. You do not have to
state to anybody that the returns on these investments are to be used
for retirement. Just simply let your money grow overtime, and when
certain investments reach their maturity, reinvest them and continue to
let your money grow.
Another popular type of retirement
account is Public/Private Provident Fund and are typically offered
through employers, but you may be able to open a PPF on your own. You
should speak with a financial planner or accountant to help you with
this. You May also consider ULIP related pension plans to give your
retirement nest managed exposure to stock market.
Whichever retirement investment you
choose, just make sure you diversify the funds. Again, do not depend on
Public Provident Fund, company retirement plans, or even an inheritance
that may or may not come through! Take care of your financial future by
investing in it today by read related to investment and finacial
planning.
You should strongly consider talking
to a financial planner before making any investments. Your financial
planner can help you determine what type of investing you must do to
reach the financial goals that you have set. He or she can give you
realistic information as to what kind of returns you can expect and how
long it will take to reach your specific goals.
Again, remember that investing
requires more than calling a broker and telling them that you want to
buy stocks or bonds. It takes a certain amount of research and
knowledge about the market if you hope to invest successfully.
|