The Benefits of Retirement Investing That Will Serve You Well
When getting near the retirement age many people start analyzing their options for spending their lifelong savings. There is hardly any room for retirement investments, because few people really care to continue doing business after a certain age. There is the risk of inflation and the uncertainty of how long you are going to live that reduce the options of retirement investing. Therefore, people mainly focus on strategies that allow them to lead a comfortable life off the lump sum they've accumulated through the retirement plan for savings.
The purchase of a life annuity represents a good form of retirement investment. And here you have one example of how things can go wrong: without a good planning of the monthly expenses, you'll have zero money left in the bank account towards the end of your life. With the annuity, entrust the savings to an insurance company, and for the rest of your life you'll get a monthly income. Life insurance is one other service provided by annuity sellers. The only problem with annuity is inflation.
The right retirement investing solution is to join a program that guarantees an unchanged purchasing power every year. Add the Consumer Price Index to the annuity and you have the right income. Some companies are indeed offering inflation-adjusted retirement investing plans in the forms of annuity. The inflation adjustment is thus operated by means of the Treasury Inflation-Protected Securities. Last but not least, there is also the issue of the fees charged for annuities.
Experts claim that annuity should be a retirement investing option when you have exhausted the money from the retirement funds. Let's take a concrete example. Make the retirement plans for a life expectancy of 95 years. By then, all the money from the savings will be used. At such an advanced age, you can then cover the health and living expenses by getting an annuity against your real estate.
Other ideas for smart retirement investing that protects one against inflation is stock ownership. Maybe $1 million will not mean the same thing in 50 years from now, but if you have a small ownership percentage in General Electric for instance, you will still be a rich person despite of the inflation. Make the right decisions when you are still an active worker. - 23223
The purchase of a life annuity represents a good form of retirement investment. And here you have one example of how things can go wrong: without a good planning of the monthly expenses, you'll have zero money left in the bank account towards the end of your life. With the annuity, entrust the savings to an insurance company, and for the rest of your life you'll get a monthly income. Life insurance is one other service provided by annuity sellers. The only problem with annuity is inflation.
The right retirement investing solution is to join a program that guarantees an unchanged purchasing power every year. Add the Consumer Price Index to the annuity and you have the right income. Some companies are indeed offering inflation-adjusted retirement investing plans in the forms of annuity. The inflation adjustment is thus operated by means of the Treasury Inflation-Protected Securities. Last but not least, there is also the issue of the fees charged for annuities.
Experts claim that annuity should be a retirement investing option when you have exhausted the money from the retirement funds. Let's take a concrete example. Make the retirement plans for a life expectancy of 95 years. By then, all the money from the savings will be used. At such an advanced age, you can then cover the health and living expenses by getting an annuity against your real estate.
Other ideas for smart retirement investing that protects one against inflation is stock ownership. Maybe $1 million will not mean the same thing in 50 years from now, but if you have a small ownership percentage in General Electric for instance, you will still be a rich person despite of the inflation. Make the right decisions when you are still an active worker. - 23223
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posted by X - Men @ 8:46 AM
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