Retirement can be a difficult time, financially speaking. There’s no longer a reliable, steady income for most people. Retirement advice Perth always makes a point of saying people should prepare for their final years ahead of time.
There’s one thing missing, though. Retirement advice Perth rarely dwells on the idea that you might want to do something “more” with the income you built up beforehand. With that in mind, what do financial planners in Perth think are the best investments for when you retire?
The most common method is to create an investment portfolio. Stocks and bonds are usually the best choices, but real estate isn’t unheard of either. This provides a steady income for the long-term.
A portfolio has the advantage of being useful in building a retirement income in the first place. You also have the choice of leaving it to any loved ones when you pass away. The reliability of it can vary, but as long as you have a good spread, you minimize your risks.
Some people also suggest getting into real estate in your retirement years.
You could buy a nice property, use it as your retirement home. Much like stocks and bonds, it also lets you leave it to your family after you die. Real estate is also an excellent investment because, if you have to, you can liquidate it for hard cash.
Besides, who doesn’t want a comfortable home to spend their final years in? It’s never too late to own the house of your dreams, especially if you can afford it and the upkeep.
Keep some cash away for emergencies.
Everyone, from the young to the retired, should have safe alternatives for their cash. A savings account is a good idea or some manner of reserve account. Whatever you choose, make sure it acts as a safety net in case something happens to everything else you have.
The reserves also help in case you have emergency expenses. These can come up out of nowhere in retirement, so having something you can liquidate without affecting your investments helps a lot.
A final bit of advice is to pick an investment type that works best for what you already have.
Some people prefer annuities because it plays well with their current portfolio. Others get into rental properties because it supplements their retirement income. There are those who decide they can take a few more risks with their portfolio in their golden years.