Retirement Investments--Act Now For Security Later
You already know that if you want to have security in your retirement, you
need to act sooner instead of later. The ideal age to start might be 20. But
your investments will still add up to much more money if you start investing
at the age of 40 or even 50 instead of waiting till you are nigh unto
retirement.
There are several strategies that you can use for your retirement investment
plan. But unfortunately, there is no strategy that is totally free of risk.
If you want to use savings to fund your retirement, you will probably want a
strategy that entails the least risk. In that case, you might consider
investing in T-bills and bonds. There is no risk to their face value over
time: the face value always remains payable. However, there is a risk to the
time-adjusted value, the spendable value, of your T-bills and bonds. That
risk is inflation, which fluctuates unpredictably and may make your savings
worth less than you could have predicted. The healthy interest rate of today
may be a sickly thing in the future.
Banks and insurance companies offer many different plans that you can
include in your retirement strategy. You can have the security of dealing
with the larger financial institutions that are generally conservative. But
the face value of your financial instruments and their interest rates are
still subject to the erosions of inflation.
Because of inflation, you may want a strategy that places some of your
investments in assets that will usually rise in value commensurately. The
best example is real estate. You can, of course, start by owning your own
home. After that, you can look at owning rental properties, improving
fixer-uppers, joining a realty investment group, or otherwise profiting from
the maxim, "God quit making land but He did not quit making people." The
biggest risks in real estate are sudden, unexpected expenses such as repairs
and unpredictable changes in the real estate market. Still, real estate is
the investment that is most likely to keep up with inflation.
If you want some gamble in your retirement investments, you can roll your
dice in the stock market. You might gain a good amount of money
overnight--or you might lose it. The risks in the stock market are many,
including, but not limited to, fraudulent offerings, "stock brokers" who are
hardly more than phone solicitors, war, OPEC, and selling frenzies. Still,
you can not shun the stock market for your retirement investments without
considering that many people and institutions have made desirable long-term
profits. Indeed, some of the institutions where you place your money for
"safe" interest are putting some of that money into the stock market. If you
are not an expert, you can minimize your risk by investing in mutual funds,
thereby benefiting from the expertise of the fund managers and your share in
diversified purchases.
If you are alive, you have risks every day. Lifting a cup of hot coffee
entails a risk, as does stepping off a curb. Reduce the risks in your
strategies for retirement investments by study, careful thought,
consultation with experts, and diversification. Then you can look forward to
your retirement with a sense of security.
About The Author: Tom McClure is a freelance writer for ASeniorHaven, the
site for seniors over 50 and their families.
For more information on retirement investments, visit
http://www.aseniorhaven.com
