Investment Opportunities in Your Twilight Years

Retirement sounds scary for people, especially for those with little to no plans on how to sustain themselves after work. That’s why investing in assets that will continue to work for you even if you cannot work anymore cannot be overlooked. Think about how you will decide to spend the later years of your life. Even if you don’t know how long you’ll live in retirement, you should save up to prepare to live in retirement for a long time.

Not all retirement investments work for everyone, however. Take a look at a few of these tips — some of these retirement tips are worth giving a try, considering how basic the processes are to fuel them to become something productive.

1. Invest in Real Estate Trusts

Real estate is really hot these days. There are a lot of young people or couples that are starting to look for homes at a reduced rate. Taking out VA loans — if you’re a vet with years and years in pension tucked away — seems like a sensible choice, but remember to know how to invest properly.

Real estate trusts aren’t properties you buy. These are investments that are put into mortgages or basically put into stock investments in various properties. You earn off the dividends that you get from these investment trusts. It’s a good investment since these dividends are often higher than those from a regular stock exchange dividend.

2. Dividends from Stocks Are Still Worth It

While real estate trusts yield higher dividends than stocks, they are still worth it because they yield dividends that are still higher than, say, U.S. Treasury securities and certificates of deposit. These may look like the wiser choice in terms of security but like they say — low risk, low reward.

If you still want your gains from stocks to be fairly secure, you should try to avoid ‘putting all your eggs in one basket’ by getting an index that has numerous dividend-paying stocks. It’s like still getting a regular income even if you’re not putting in any work.

person holding his portfolio

3. A Diversified Portfolio Still Works in Retirement

From putting your money in different stocks, you might have heard about a ‘diversified portfolio’ once or twice from your financial adviser. This means that you invest in different dividend-yielding stocks or funds. This is done to maximize the most out of your investments.

If you are enjoying a lot of returns from your stocks, be warned that you also shouldn’t just withdraw your money when you feel like it. Most investments like this will have a set of rules which will allow you to take out money from your investments. The typical rate should be at around 4% or 7% per annum.

4. Invest in Your Country — Municipal Bonds

Confused about where to place your money? Place it in the government instead. Invest in municipal bonds that are issued by the government itself — from the local (county, municipal governments) to the national (state government). The interest you gain here is tax-free and this investment is usually done for federal income tax purposes.

It’s not as high as dividend income, but it is still miles ahead of U.S. Treasury bonds. If you’re looking for investments with a shorter maturity that you can feel right away through occasional withdrawal, this is it.

5. Rent Out Properties

Rental properties are a good source of retirement income too. These may be the fruits of a long time of saving and buying properties, or they may be the fruits of loans taken out to use for investment. These may seem like a sound investment because you can get your returns pretty quickly, but you may have to do regular maintenance work to keep these properties presentable. Still, it’s a good investment if you want to feel like you’re still doing work in your retirement.

Any of these investment options can be profitable if you’ve done your due diligence. Part of the problem is when retirees invest in something that they have no idea of. Doing that will only lose you money that you don’t make anymore. Knowing what you’re getting into, or getting the help of a financial manager, will go a long way to helping you get the best out of your hard-earned money.

Scroll to Top