What really is the best form of investment for a person going into retirement?

Discussion in Retirement Plans started by ExpertAdvice • Oct 22, 2014.

  1. ExpertAdvice

    ExpertAdviceActive Member

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    For a person of modest means, who is approaching retiring age, and has no steady source of investment yet, what would you advice is the best method for them; we've heard about the stocks, the real estate, the business plans, and the other investment methods, but can we all really examine on a case by case analysis what would be the best investment method for anyone, not just a retiree. Let's discuss to the future! :)
     
  2. owesem75

    owesem75Active Member

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    I just read about this topic earlier and there was a mention of MUTUAL FUND with fixed return that you can spend on your retirement. Also, one can avail themselves of an investment linked insurance or pension plan packages for added security. Investing in the stock market could be good, but it's high risks - unless you know what you are doing and familiar with how the stock market works.
     
  3. ExpertAdvice

    ExpertAdviceActive Member

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    Mutual funds seem like a really good investment tool. But, I'm not sure that it will bring money monthly. If it can do that, that would be great. The "bond" is a good thing to invest in as you are guaranteed something monthly plus your initial principal.
     
  4. Denis Hard

    Denis HardWell-Known Member

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    I'd suggest residential real estate. There's risk of losing your investment is much lower because:

    - You can resell the property you bought at either a higher price.

    - You'll collect rent monthly — guaranteed income.

    What more would one want? You let a real estate agent manage your investment for you, sit back at home and wait for your money to be spent to your bank account. IMO that's how one should retire — no fancy cares.
     
  5. Onionman

    OnionmanActive Member

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    We all have views, and it really is a case by case scenario, dependent on risk tolerance, liquidity needs, lifestyle choices, health etc etc. But without sounding too outside the box, one of the best investments really should be about investing in yourself. That's all about staying healthy, staying relevant skill-wisefor the job market (whether or not you choose to retire), maintaining a healthy network, and keeping the brain functioning. These are things you can control. You can't control the return on real estate, the stock market or a mutual fund. You need to be in these areas but invest in controlling the controllable.
     
  6. Jamille

    JamilleActive Member

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    Mutual funds investment is stock investing and subject to the vagaries of the stock market so there's no assurance of returns at all but a certainty that you'll be paying fees to the organization handling the investment for you.

    A safer way to make your money work for you is by investing on government bonds. There is a fixed rate of return which is a few times higher than what you will earn from regular savings account or even time deposit accounts.

    A person with modest means can start a business that will earn passive or almost passive income that he/she can operate while still working or in retirement. One such business I know is a small utility vehicle business which requires low capital outlay and has low cost maintenance requirements. I know of people who started with one vehicle and expanded their fleet by plowing back the earnings from their first investment.
     
  7. Alexandoy

    AlexandoyWell-Known Member

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    I have retired in the middle of this year and since my wife is still working, our final plans for retirement is put on hold. For subsistence, our intention is to buy a lot or house to be rented out. Real estate is the safest investment here because it is sure to appreciate in value. We have studied other investment options like transportation and small business such as stores or boutiques but it has a big risk. Pity on a poor old couple if the business would go bad.
     
  8. biege

    biegeActive Member

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    I would recommend life insurance + mutual fund but you might want to invest more in real estate--this is the best investment available anywhere in the world.
     
  9. remnant

    remnantActive Member

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    In my opinion, the best form of investment for a retiree is premium bonds and treasury bills which are sources of passive income. Another option is to invest in groups in earning projects or real estate units which they don't have to participate directly as they can invest in some employees to move the projects forward.
     
  10. Nakitakona

    NakitakonaActive Member

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    This is a timely topic for I have just retired on October 14. I opted to have an automatic pension for what I have to receive for my monthly pension is a bit higher to compare with my monthly salary before. However, I would be receiving the return of my investment from the government insurance and from my terminal pay to be paid by my employer. So I have no idea on what to do with my terminal pay.
     
  11. tonyb

    tonybActive Member

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    I will suggest investing in real estates, buying landed properties now with the intention of reselling them years later. As we know lands, houses with passing of time do appreciate. I consider investments in these direction as one of the best