Learning about the best investments for retirement is essential to securing your future. Knowing that you have a portfolio of assets to sustain you after you stop working will allow you to retire in peace. Don’t worry if you don’t know where to start — we’ve compiled a list of some options for retirement investments to consider.
9 Alternative Investments for Retirement To Consider
1. Precious Metals
To diversify your portfolio, you can invest in precious metals like gold inside your IRA. These commodities tend to have low correlation to the movement of stocks or bonds, thus adding an important element of diversification to your savings. Also, gold has held its value over time. It is important to make sure you do your research and only buy precious metals from a trusted dealer, such as Birch Gold Group, which has a stellar history of customer reviews. Birch Gold specializes in helping individuals select valuables like gold and silver to invest in their IRA account.
Bitcoin, among other cryptocurrencies, is a new player to the game, but one worth considering! The value of cryptocurrencies has increased dramatically the last few years alone, with some experts predicting much more growth in the coming years.
If you’d like some more growth potential and diversification in your retirement, consider investing in digital currency within your IRA. You can also learn more about how Bitcoin investing can work for you here.
3. Immediate Annuities
Immediate annuities provide guaranteed income for life or a certain period of time. They are essentially life insurance policies, but instead of recurring payments, they require a one-time upfront fee. For some people, they may prove to be a great investment for retirement, as they provide you with regular income after you stop working. In addition, since they come in the form of insurance, your investment also gets the guaranteed protection all other types of insurance do.
4. Retirement Income Funds
Retirement income funds are a kind of mutual fund where your money is invested in a diversified portfolio of stocks and bonds. They also get the same guarantee of principal stability as they are designed to pay you back whatever amount you invest. The only difference is that unlike conventional mutual funds, retirement income funds provide investors with a monthly income.
5. Rental Real Estate
Rental properties are undoubtedly one of the top choices for many investors. However, there are many factors you need to consider before putting your money in. These include substantial capital requirements, maintenance costs, property expenses, and government taxes. As with any other type of investment, though, as long as you put in the necessary time, money, and effort, rental properties can be extremely profitable.
6. Real Estate Investment Trusts (REITs)
If you want to venture into real estate but don’t want to manage any properties yourself, REITs can be a great alternative. They work just like mutual funds, so instead of giving you access to just a single property, they provide you with partial ownership of a portfolio of different ones. This ultimately minimizes your risks as an investor because it allows you to put your eggs in different baskets, so to speak.
7. Dividend Income Funds
Dividend income funds are stocks invested in companies that do profit sharing. They’re well suited for those who seek a steady cash flow in retirement. Their only drawback is that they are taxed as ordinary income. The good news is you can work around this by investing in publicly traded companies.
8. Municipal Bonds
Municipal bonds are debt obligations issued by the government. They typically generate tax-free income. Their only downside is that while they’re less risky than other types of investments, they also usually provide lower returns.
9. High-Yield Savings Account
If you’re looking for something that does not require you to lock your money down completely, then a high-yield savings account is perfect for you. As the name suggests, it works pretty much just like a regular savings account, but with significantly higher interest rates. It also allows you to withdraw your money without any penalties as long as you don’t go over the maximum frequency allowed.
Assets like the ones listed above may help you lead a worry-free retirement. Secure your future by building a solid investment portfolio today!
What do you think are the best investments for retirement? Share your thoughts in the comments section below.