I think that the only problem we would ever want to have is the problem of having too much money to spare. You know, there are people who worry about having enough money before retirement, but there are those who ‘worry’ about where to put their money to keep it running before they retire. Oh God! If I would ever have a problem, I would certainly choose the latter!
Well, if you have the same problem, have a look at our list of top investments to make before your oh-so awaited retirement.
INDUSTRY-SPECIFIC INDEX FUND
If you prefer to invest in a certain industry but don’t want to do heavy analyzation on its top players, this investment fits perfectly for you.
It gives you a narrow but diversified exposure to your chosen industry that enables you to focus more on your investment.
It’s suitable for both beginners and advanced investors who seek more exposure in their chosen industry.
1) CERTIFICATE OF DEPOSITS
This type of investment is more commonly known as “CDs” and has maturity dates that can range from several weeks to several years.
With Certificate of Deposits, you’ll receive interests from a financial institution at regular intervals. The original principal will be returned plus its accumulated interest. As of January 2020, you can expect to earn nearly 2.25% of interests in this investment.
2) MONEY MARKETS ACCOUNTS
If you’re just starting out as an investor, this investment is a good option to establish a not-so-big cashflow and your emergency fund. Compared to a savings account, it typically earns higher interests, but the catch is, it requires higher minimum balances. It is liquid and great for emergency savings, but be prepared for its higher number of restrictions when it comes to withdrawal.
3) RENTAL HOUSING
If you have the patience to manage properties (and deal with various tenants), then you may choose rental housing as your next investment.
It’s an excellent source of cash flow, given that you gradually pay down your debt, grow your rents, and hold your assets over time. Also, what you must include in the success equation is choosing the right property, the right means of financing it and maintaining it on a longer-term.
4) GOOD YACHTS
Browsing for some of the shiniest yachts on the ‘net?
This is an investment for the rich, I mean RICH as this is somehow just a luxury that won’t give you cash in return. However, owning one is such a fulfilment. Many just want a peaceful and calm environment as they age, so to stay in a yacht swayed by the waters just calms our minds and hearts. Thus, retired people will surely love this kind of investment despite its being too expensive. There are also used yachts out there that are cheaper, just like these Hatteras Yachts for sale.
5) HIGH YIELDING SAVINGS ACCOUNT
If you need quick access to your cash in the near future, then this one’s for you. Basically, it’s just like any other savings account, but with one major difference, it yields higher than normal savings accounts.
You can certainly earn far higher interests on online banks with minimal overhead costs. There are accounts who pay 2 per cent to its holders, which is considered high, compared to the usual rates of a savings account.
6) GOVERNMENT BOND FUNDS
These are mutual funds that are focused on investing in debt securities that are issued by the U.S government, including its agencies. These bond funds are invested in debt instruments such as mortgage-backed securities, T-notes, T-bills and T-bonds.
7) SHORT-TERM CORPORATE BOND FUNDS
When corporations want to raise funds for specific projects or other necessities, they issue bonds to investors.
It can be one of your top choices if you’re looking for good cash flow and wanting to trim down your overall portfolio risk. It’s also good when you seek to earn a return.
It has an average maturity of one to five years, which has a lower risk of being affected by interest rate fluctuations.