Retirement Investments: Good and Bad Choices
Smart people prepare for their retirement years because they realize the importance of retirement investing and the impact it will have on their future. All of us are worried about the current economy, and where it may lead us in the future. We’re constantly looking for the best retirement investment advice because proper investing is important, as it will be the basis for how you are able to live after you retire.
There are of course good retirement investments and bad retirement investments. I wanted to give you a quick rundown of some retirement investment options that you may want to look into, while at the same time showcasing some you may want to avoid. Remember, smart investing will allow you to enjoy your later years, so take some extra time to invest wisely.
Good Retirement Investments
Since the economy has let us down these past few years, lets explore this from the angle that you have already started investing for retirement and that you have less than 20 years before you are set to retire. If you have lost a substantial amount of money in recent years, then some of these options may help get your goals back on track – or at least get you some of your money back. With that being said, the following list of investment options are well suited for individuals of any age, so keep that in mind as well.
Remember, these are just suggestions. Every situation is unique based on your existing portfolio so you’ll want to do your own research and speak with a professional. That being said, some of the best retirement investment options available are as follows:
- United States Treasuries
- Certificates of Deposit (CDs)
- Unit Investment Trusts (UIT)
- A Sub Account with a Registered Investment Advisor
- Life-Cycle Funds
- DRIP Plans (Dividend Reinvestment Plans)
- Real Estate
- Variable Annuity (VA)
- Individual Retirement Account (IRA)
Remember, with the economy the way it is, it is always important to expand your investing horizons. These are just some things you may want to consider.
Bad Retirement Investments
On the flip side, there are definitely a few retirement investments that you may want to avoid. While you may get lucky with some of these, they can be risky and you should take extreme caution, especially if you’ve lost a lot of money based on the terrible economy over the past few years. Here are some retirement investments that you may want to avoid.
- Liquid Investments
- Overly Short-Term Investments
- Non-Diversified Investments
- Over Diversification
- 401k That You Already Borrowed Against
- Too Much Company Stock
- Gold (Too Volatile)
There are other bad investments out there, so you want to be sure to avoid them at all costs. Remember to really do your homework when deciding about your investment options.
Here are a few more investment options to consider that most do not think about. These could turn out good or bad, so if you don’t have any expertise in these areas, you will want to do your homework or you may want to reconsider. Some popular investment choices include:
- Classic Cars
- Sports Memorabilia
- Coins and Other Collectibles
- Other Fine Art
- Starting Your Own Business
It is up to you to decide how you will spend your retirement. While the economy is tough right now, you can still make choices that will benefit your future. Good luck!
Filed under: Retirement Investing
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