New Rules for Retirement Planning and Investment
As we’ve seen, the old way of planning financially for your retirement has left many people in serious trouble, including postponing retirement or simply having to make do with less. Experts are now giving lots of tips for re-planning your retirement funding to avoid some of these issues and tips include:
- Make sure your retirement investments are balanced and mixed. Try to spread the money across two or three different strategies.
- Balance your portfolio in regard to yield and risk. Leave some in quality bonds or treasury bills (which don’t provide much yield, but are secure) and invest some in higher-performing (but higher risk) stock funds.
- Consider investing in municipal bonds rather than government bonds, especially if you fit into a higher tax bracket. You get decent security but a much better yield on your investment.
- Take particular notice of stocks that usually provide good dividends. These tend to be in consumer industries which continue to do well even in more difficult economic times. If your stocks give you a good dividend income, this offsets the risk of their value falling.
- Don’t be afraid to consider alternative investment strategies like real estate investment trusts or inflation-protected securities, but of course get good advice before you invest.
This entry was posted on Sunday, February 15th, 2009 at 5:05 am and is filed under Retirement. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
