2. Stocks
Although stocks are consistently perceived amongst the public as only being suitable for more youthful and brave investors, many retirees can also find huge value in making the stock market a component of their investment strategy.
Having said that, of course, you will want to become more conservative, and less tolerant of risk as you get older, even still, this will depend on personal and risk preferences.
Of course, your status as a retiree will also influence your own personal choices. Retirees should favor stocks that offer slow but steady growth, combined with promising dividends, rather than the trendy & hot tech stocks that younger investors prefer.
Mutual funds can be a great option for retirees, as it means you can spread the risk across multiple stocks, and your money will be managed by a professional manager, meaning you can have your investment decisions made by someone who is up to date with the financial news.
The high returns and potential of mutual funds make stocks one of the best investments for retirees.
3. Cash
Even though it may not be the first investment for retirees to spring to mind, it’s important to remember this you still need to hold enough cash in hand to cover everyday expenses such as food, clothes & rent/mortgage payments, as well as some funds for other excursions to enjoy your retirement.
Rather than allowing this cash to sit in a checking account where no interest can be applied, you may wish to place it into a money market account, or savings account with a decent rate. This way, you can still make some nice returns while having sufficient cash on hand to cover the basic expenses.
4.Rental Property
A rental property can be a secure income source, and one of the very best investments for retirees as long as it is done right.
If you find the right property, charge a solid rent price to cover bills, taxes & rent payment, all with enough extra income to put into your pocket, then real estate investments can make for an incredibly lucrative investment deal for retirees.
Of course, it’s important to bear in mind that once you own the property, you become a landlord, which is not an easy task. You will have to put in the effort to make sure that things are running smoothly for your tenants.
If you feel like you don’t have the time or energy to do a good job with it, you can still hire a professional to take care of things. The downside is, that this will eat into your profits thanks to fees.