Seanest - Jan Van Parijs Properties

These are the Best Options for Retirement Investment

Saving for your retirement shouldn’t be taken lightly, as it’s something which is going to have an effect on how you live out the last golden years of your life. In fact the sooner you start saving for retirement the better – from your first job if possible.

 

retirement-investment.jpeg

 

Saving for your retirement shouldn’t be taken lightly, as it’s something which is going to have an effect on how you live out the last golden years of your life. In fact the sooner you start saving for retirement the better – from your first job if possible.

There are tons of different retirement investment options that you can consider when looking into how you can begin building up a nest egg. This is great for having the choice on how you plan your monetary future however the huge variety can also prove difficult for some.

There are so many retirement investment options that some people can feel overwhelmed, unsure of what to choose and how to go about it and this results in them delaying their investments over and over. This is fine for a short period of time but unfortunately, more often than not, it results in a complete lack of preparation and some people simply leave it till the very last minute.

Here is a breakdown of some of your best retirement investment options that will ensure your nest egg is well and truly ready by the time you reach retirement:

 

Make sure to keep it balanced

 

When it comes to planning your retirement investment, you should keep in mind that you don’t want to put all your eggs into one basket and risk losing everything or not making enough. A balanced approach is best and your should have a look at both short-term and long-term investments, as well as considering putting your money in both high-risk and low-risk retirement investment options.

 

Have a pension plan

 

Your company may have a retirement investment plan for you already that will stand you in good stead to retire with at least a small nest egg – this doesn’t however mean that you should rely on this solely. Even if you have a great pension plan at your company – you should still make external investments to ensure that you have more than enough for your golden years.

 

Annuities

 

Annuities are an agreement that you enter into with an insurance company and they come with great benefits but also some risks. The benefits are that they have tax-deferred growth of earnings, no annual contribution limit and provide a steady income during retirement. However, they are also notoriously expensive payments and if you decide to retire before the funds mature then you will likely be liable for early withdrawal penalties.

 

Individual retirement accounts

 

An IRA is practically a saving accounts that has some savvy tax benefits such as investments growing tax-deferred and contributions may be deductible, a variety of investment options with a wide range of risk/reward characteristics and you have some say in terms of how your money is invested, as investments are done directly through financial institutions including banks, mutual fund companies and brokerage firms.

They can be quite high risk depending on where and how much you invest. You may also be liable for early withdrawal penalties.

 

Stocks and bonds

 

When you buy stock, you are purchasing a part of a company. This can be lucrative if the right investment is made, however if the company goes under – you will make a loss.

Bonds are basically an IOU from a company or government institution that allows you to extend a loan in order to buy or invest in something that could give you great returns. Although they are similar to stocks – bonds have certain risk-free options.

 

Property

 

Property is a tangible or hard asset, that proves to be one of the most reliable retirement investment options out there. It can be lucrative if you buy in a neighbourhood that is about to go through gentrification but more often than not it simply provides a stable monthly income from rentals and can make a wonderful retirement home when you get there. Buying property in a foreign market is always a great retirement investment option, from villas in Calpe to townhouses in Madrid – Spain has unlimited opportunities.

If you want more ideas, information and advice on retirement investments, download our new guide The Ultimate Blueprint for Retirement Finance.

 

 

Subscribe to our blog

Experience the Costa Blanca

Subscribe and you'll receive information on the real estate sector, interesting content on Calpe, Altea, Benissa, Moraira... and its surroundings, special offers and much more.