15 May Best Investments in Retirement
People are living longer and healthier lives than ever before and while that’s great news, we have to be mindful that it also increases the financial burden for funding our retirement. You can’t run a 10K in shoes designed for walking. Is your retirement portfolio poised to go the distance or will it peter out before you reach the finish line?
Conventional wisdom says we need to diversify our investments with a varying mix of stocks, bonds and cash, but what kinds of stock and bonds and at what percentages should we allocate our money? How much cash and where do we keep it? A CD? Money market? Buried in the backyard? And what about a reverse mortgage and these REIT’s we keep hearing so much about? If your head is spinning already, you are not alone, but take comfort in knowing that you don’t need an MBA or a PhD to understand investing… and don’t fall for the marketing hype of the financial institutions that tell you otherwise.
So, what are the best investments for retirement? To answer that question, you first need to know what your retirement goals and objectives are. Once you have identified those, much of your confusion will evaporate and the rest of the pieces will begin to fall into place. Let’s take a moment to examine some possible goals you may have for your retirement.
Some people want to generate additional income during their retirement years to supplement what they will be getting from Social Security benefits, savings and their 401(k)s. If this is your goal, you should focus on income producing investments, such as creating a customized individual fixed income portfolio, specialized annuities based on your specific needs or specific limited risk option strategies.
Other people want to preserve and grow their wealth so they will have something to pass on to their heirs. If this is your goal, you will want to investigate a legacy wealth transfer strategy or utilize a very low risk multi-prong methodology that captures predictable income payments which are then leveraged to enter directional stock or other market positions.
Before committing to these strategies, however, be sure to investigate the death tax liability your beneficiaries might have to pay upon inheriting your IRA or other tax deferred accounts and what you can do to minimize or eliminate it.
Retirement planning is a lot like gardening. Planting good seed now will ensure you have a bountiful harvest later, when you need it the most. If you have a particular question, are confused or need a little help please contact us.