It’s never too early to plan your retirement. After years of hard work, retirement should be a relaxing time to spend with your loved ones without worrying about where your money will come from. This is why most people decide to make retirement investments to give themselves a peace of mind.

When a man retires, his wife gets twice the husband but only half the income.

Chi Chi Rodriguez

Here are some of the best retirement investments to choose from.

 You can create a total return portfolio

One way through which most people create retirement income is by creating a return portfolio that consists of stocks and bonds. This portfolio is designed in such a way to accomplish a reasonable rate of return that is long-term and that follows rules related to withdrawals.

These rules usually allow you to withdraw a small percentage a year (about 4-7% annually). The concept behind this return portfolio is to achieve an average yearly return that would last between 10 and 20 years.

If you are considering this type of investment, know that you would have to keep track of your portfolio and maintain a diversified provision. There are many ways of making this investment strategy, and it’s mostly used by experienced investors who are good at managing their money and don’t see it as a burden. When the total return portfolio is executed correctly, it’s one of the best retirement investments, but you have to manage it constantly.

 You can use retirement income funds

These funds are mutual funds that automatically distribute your funds through a diversified portfolio that, just like the previous one, consists of stock and bonds that are managed with the aim of generating a monthly income that is distributed to you. They are created in such a way to provide a package that needs to accomplish a particular goal, like for example a higher monthly income. With this type of fund, you can have control of your principal and have access to your money any time you want. However, if you make a withdrawal, your future monthly income will reduce.

 You can get immediate annuities

Immediate annuities are more of an insurance than an investment that provides a guarantee for future income. You get an immediate annuity from your insurance company that is providing you with a guaranteed income for life in exchange for an agreed amount. This type of investment is good for people who aren’t good at saving money.

 You can purchase bonds

When used correctly, bonds are a great retirement investment. They aren’t hard to understand; when you buy a bond, you buy it from the government or a company. This way, you loan money that gets paid back to you over a certain period of time with an interest. When you’re choosing a bond, you can see its quality rating to decide if the financial strength of the bond issuer seems like it would be a good investment for you. There are also many different types of bonds for you to choose from — short-term and long-term ones, bonds with adjustable interest rates, and high-yield bonds. 

Placing all those benefits aside, buying bonds can be risky because their value daily goes up and down.

 You can rent out real estate

Renting real estate could be another source of stable income for retirement if you know what you’re doing. Before you buy a property that you’re planning to rent out for income, you need to be aware of all the potential expenses that will inevitably occur, such as the maintenance you will be required to finance.

And, of course, you have to be prepared for the fact that you won’t always be able to find someone who will be willing to rent your property, so there will probably be months when you have no income at all. Real estate is a business that you shouldn’t go into before doing extensive research on the subject.

 You can (and should) keep safe investments

Keeping safe investments on the side is a way of keeping a part of your retirement investments in a safe alternative that you could use if your main savings strategy doesn’t work out the way you planned. This is a type of protection that every retiree should have. It is a sort of emergency fund that is viewed as a safety net that shouldn’t be accessed unless something goes wrong in an unimaginable and unplanned way. 

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