1. Own a mix of Stocks and Bonds
2. Invest in Real Estate
3. Buy an Annuity
Most do-it-yourself investors who understand the problems with annuities either build a stock and bond portfolio on their own or buy an income-oriented mutual fund. Building a simple portfolio is not rocket science, and it needs Hard-work and deep knowledge.
If you go the self-managed route, be sure not to overdo it on bonds early on. Most retirees will live years longer than they assume, and they will need stocks to live wealthy life in retirements. Get 5 Stocks to increase your portfolio.
It’s better to diversify your investments among different investment sectors, real estate is an entirely different sector. Becoming a landlord, for example, involves a lot more than stucking money around or maintaining an investment account. Not only do you have to manage your property, but you have to deal with tenants and their issues.
But, let’s say you don’t want to own physical real estate. In that case, you could always invest in REITs (Real Estate Investment Trusts). Get 5 REITs List here.
Annuities can be thought of as after retirements plans. You buy them from an insurance company and the insurer takes on the risk of both market losses and your personal longevity. A lot of people like the idea of no-fuss, guaranteed income, at least until they get a year or two into the plan.
That’s about the time they realize the real cost of most annuities. Insurance companies do provide some retirees with a useful option, but most people should not buy these products at all. The fees are excessive and the returns are often far lower than one would expect from even a conservative portfolio. Want to know 5 Inexpensive Annuities Scheme?