Options_Of_Investments_For_The_Time_You_Retire

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					Options Of Investments For The Time You Retire

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756

Summary:
Many people plan to depend solely upon their social security checks to
get them by in their golden years, but the cold, hard fact of the matter
is that social security is not enough. In today’s economy, where housing
prices and rental rates have risen at phenomenal rates, the $800 per
month that social security pays is barely enough to cover housing costs
in most cases, much less insurance premiums and food.

For this reason, it is important that everyone develop a financia...


Keywords:
investments,retire


Article Body:
Many people plan to depend solely upon their social security checks to
get them by in their golden years, but the cold, hard fact of the matter
is that social security is not enough. In today’s economy, where housing
prices and rental rates have risen at phenomenal rates, the $800 per
month that social security pays is barely enough to cover housing costs
in most cases, much less insurance premiums and food.

For this reason, it is important that everyone develop a financial plan,
and your financial plan should start with investing. Investing will help
ensure a steady source of income long into retirement, making your life
much easier and more enjoyable. The following are brief descriptions for
beginning investors to help familiarize themselves with the many
different kinds of investment options available:

401K Plans

401K Plans are the most common type of investment, and one in which
almost every worker has. The reason for this is they are the easiest
investment because they require very little attention on the part of the
workers who have them. They are so easy that workers don’t even have to
worry about contributing to them, for their employer does it for them. In
fact, most workers with 401K Plans never even notice the deduction from
their paycheck.

Stocks

Stocks are a common type of investment amongst the population who makes
more that $125,000 annually; however, it is growing more common to see
more middle class households invest thanks to the availability of online
investing and lower fees companies offer. Investing in stock is a wise
option and provides great returns for your money. If you decide to use
this option you may want to strongly consider hiring a broker to guide
you in the decision making process; however, if you are part of the
middle class just starting out and can’t afford a broker, you will want
to make sure and conduct thorough research before investing. There are
many helpful websites that offer great advice.

Real Estate

Real Estate is one of the most lucrative investment options available,
and thanks to lax lending standards almost everyone can invest in real
estate with little or no money out of pocket. Buying real estate and
renting it to tenants is a great way to ensure long term income streams
for you long into retirement. People will always need a place to live and
property is the one thing that can’t be created or grown. In fact, before
considering the many options listed you may want to strongly consider
investing in real estate.

Bonds

Bonds are a safe way to ensure that at the very least, when the term of
the bond is up and you cash it in, you will walk away with your initial
investment. A bond is a promissory note from the government or a private
company, in which you loan them a certain amount of money, and in return,
they agree to pay you back with interests in a set amount of time.

Mutual Funds

Mutual funds usually reward the broker in charge of them better than the
investor, but they are still an investment option that is available, and
one which requires less risk on the part of the investor. What
essentially occurs when investing in mutual funds is that a broker
manages your money and invests it in a list of various stocks so that
your money is diversified and the risk of you losing it all quickly is
lessoned.

Money Market Funds

Money market funds are a safe short-term investment option. This kind of
investment makes you an independent shareholder in the company in which
you invest and requires you to pay only $1 per share. In addition, these
investments often come with check writing privileges, allowing you to use
the money whenever you need or want to.

Annuities

Annuities offer you the chance of developing tax-deferred income.
Annuities are an agreement between you and an insurer, in which your
investment protects your earning potential should you run into job
problems down the bumpy road that is life.

Brokered Certificates of Deposit (CDs)

Of all the investment options available, CDs offer the lowest return for
your money. However, the upside is that you can use the money at any time
without paying penalties, even though you agreed to deposit the money for
a set amount of time. Life is unpredictable, so this is a nice option to
have.

Do not let yourself become one of the 80% of the population that retires
poor and struggling.

				
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posted:3/2/2010
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