To make the most of your nest egg, you need to learn how to make your money work for you through smart investments. As you prepare for retirement in Jefferson County, you will need to know how to take advantage of investment opportunities so you can have peace of mind about your financial security.
Your recommendations for investments will be different than those of people who have just entered the workforce, so it is best to get customized financial advice to meet your needs. At SeniorSmart, we realize that preparing your finances for retirement is not always a straightforward task. Between a savings account, bonds, and the stock market, it is easy to get confused about which options are best for you. Our members can take advantage of our concierge-level services for help with financial planning. Give us a call at 205.460.1124 today to learn more.
Smart Investments Can Help Prepare You for a Comfortable Retirement in Jefferson County
Investing your money wisely at a young age is one of the best ways to prepare for retirement. However, it is never too late to learn how to maximize your money to support your retirement lifestyle. Even if you are already retired, you can still learn how to use financial investments to your advantage to make your money go further. Depending on what stage of life you are in, your recommendations will be different.
As a senior, you will likely want to stick to safe, low-risk investments. If a younger person were to lose money in the stock market, they would still have time to recoup their losses before they head into retirement. Seniors generally need to be more cautious when investing their money. The main goal will be to earn money on your investments with as little risk as possible. This will usually be a slow and steady approach with modest earnings, but it is safer and more reliable.
Some of the best low-risk investments for seniors include:
- Money market accounts
- Mutual funds
- CDs (certificates of deposit)
- Treasury securities (bills, notes, and bonds)
- Corporate bonds
- Preferred stocks
- Dividend-paying common stocks
- IRAs (individual retirement account)
- Real estate investing
Is a Savings Account Still a Worthwhile Option?
A savings account used to be one of the most common ways to earn money off cash safely. However, interest rates may not keep up with inflation, so it is smart to diversify your investments to maximize your earnings. While a savings account is a safe method since you do not lose money, it is also not likely to earn much. At this time, the interest rates are exceptionally low, with the average rate being approximately 0.05%. However, that does not mean you should close your account and put all of your money into the stock market. Online banks tend to offer a better deal since they do not have the overhead of a traditional brick-and-mortar bank. With a little comparison shopping, you can find high-yield savings accounts with rates closer to a 0.6% APY that offer no fees and no minimum balance requirement.
Get Advice on Investments for Seniors from SeniorSmart Concierge Services
When you are preparing your finances for retirement, you want to know that your hard-earned money will provide you with the lifestyle you desire. Our SeniorSmart members enjoy financial advice and retirement planning resources. Financial guidance from retirement planning experts is one of the many benefits of enrolling in a SeniorSmart membership with concierge-level services. You can feel confident that our experienced retirement advisors will guide you through the financial planning process and set you up for a comfortable retirement lifestyle.