Safe Retirement Investments: Which Investments Will Fund My Retirement Best?

Retirees are rightfully concerned about the safety levels of the investments they count on to sustain their comfortable retirement lifestyles. Having invested consistently into their IRAs, 401Ks and other vehicles within their financial portfolios, they need to know which investments will keep their monies working for them throughout their leisure years. Asset allocation is of key importance for all retirees, even though each case is unique from all others. In order to maximize your returns, you will need to experiment with and discern the best mixture of your assets, including:

  • Stocks
  • Annuities
  • Mutual Funds
  • Life Insurance
  • Real Estate
  • Bonds

The Best, Safest Investments For Retirees

Many financial experts agree that broad-based, low-load mutual funds are one of the safest ways for retirees to invest. When you keep the fees low and rebalance your mix between stocks and bonds periodically, you optimize your chances to succeed. If you play your cards correctly, you can fund your retirement solely off the interest and dividends from these riskless investments.

More specifically, you should focus on mutual funds that keep somewhere around 40% to 50% stocks. The maximum recommended is about 2/3 stocks and the rest bonds. Again, market conditions and, personal factors, will affect your final decision making processes. When you maintain this ratio of investment, you’re going to allow room for increasing inflation too – and that is one commonly forgotten element of solid retirement planning. Now, it may only add up to 2 or 3 percent on a yearly basis, but retirement is a long-term venture – and those 2 and 3 percents each year start adding up very quickly. Check out the superannuation calculator over at Suncorp to find out how much you really need to retire in 2014 & beyond.

Whichever investments you choose to fund our retirement lifestyle, you need to always be attempting to buy low, sell high and keep track of what’s happening in your markets. If you want to maximize your returns, then you still have to put in some work learning about current market trends. Sure, you’re retired and definitely not looking for stress and headaches. However, you don’t want your portfolio to be operating on autopilot to the degree that it begins performing poorly, and you don’t even recognize the losses. You still have to be on your toes if you truly desire to have your money work for you long term.

Risky Investments To Avoid In Retirement

Basically, considering current and recent market conditions, retirees may want to shy away from CDs and cash equivalent investments. Interest rates are just so low currently that there’s not much hope for any hefty returns with these vehicles. Use the assets you have acquired intelligently. You have no need for riding the waves of chaotic markets. You have no need for red-eyed days and nights spent at the trading screen.

To keep things simple and easy, concentrate on developing your retirement financial portfolio by investing in low-risk, consistent performers that won’t throw you heavy curves. Take it easy and take the safe, slow routes. You’ve earned it.

References: CNN, AARP

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Leave a comment

  1. says

    With people living longer during retirement, the idea of having all of your money in bonds and bank related products isn’t going to work. You need the higher return of stocks to get you through all of your living years. This isn’t to say that you should keep everything in stocks, but find a comfortable balance where you can have the safety of bonds, but still earn the higher return of stocks.

  2. says

    I personally like mutual funds only because I don’t have to constantly watch them. I research a handful of them before hand, then select the ones that seem less risky and have shown stable growth over many years. So far, so good!

  3. says

    Who would not want a safe investment especially if it means you could have a nice retirement. I sure would but with so many risks involved, I really don’t know which investment is 100% fool-proof and I am finding investments kind of difficult being a simple lay person.

  4. says

    The government always claims that inflation is way lower than I think many of us know it actually is. If it isn’t gas going up, it’s milk, or some other staple. I don’t get how they say that prices only rise 1% a year. As long as you can find something that safely keeps your money earning the rate of inflation, you won’t be falling behind.

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