If you’re one of those people entering the so-called “Golden Years” of their lives, it can be stressful to find enough money to do the things that you want to do. It’s a time when you are likely no longer earning the type of weekly income provided by a steady job. That can put a lot of pressure on your Social Security payments and whatever retirement account you might have to get you the funds that you need to live.
Of course, there is always the option to continue investing money, just as you have likely all of your life. When you get older, your needs from your investment options will likely be altered. It’s not so much at that point about building up a huge amount, unless you’re planning on leaving a large amount for those left behind. Investment in later years becomes much more about maintenance of what you already have and safety in terms of not losing large amounts of what could be a dwindling amount of capital.
Speaking of capital, one way to get an immediate influx of that is to sell your life insurance, which could be a great option as you get older and the policy you took on in younger years no longer makes much sense. Here are some of the positives and negatives associated with different investment options for late in life.
One of the concerns that a retiree or older person on a fixed income carries around is that they will lose the money that they already have. Without the earning power to compensate, this can be a catastrophic event. That’s why older individuals need to be careful with equities, which can be the most volatile of all investment options. And yet there should be some exposure to stocks in your portfolio because they also represent the potential for a big gain if chosen wisely.
The number-one benefit of the bond market to retirees is that it provides safety. When an investor puts money in bonds, they can generally be assured that it will be returned to them with a little bit of profit along the way. It is rare that a bond investment will provide an out-and-out loss, although investors have to be sure to back issuers with great ratings so that no default occurs. The concern about bonds is that they may not make enough income to match inflation, which is why your exposure should not be limited only to them.
Stretching Out Your Options
When you’ve reached a certain point in your life where you’ve become settled, there is more of an opportunity to take risks on investment opportunities that are outside the box. For instance, if one of your kids or relatives is starting a business, you might want to put money in to get in on the ground floor. Don’t be limited to the obvious choices; broaden your investment horizons and you might just stumble on a late-life goldmine.
Make sure to delineate the goals that you want your retirement investments to meet. Then choose wisely, but don’t be afraid to strike when you see an opportunity so that those “Golden Years” might shine even brighter.