5. Annuities
Annuities are essentially investment contracts between retirees and insurance companies. Generally speaking, they involve a guaranteed return at an agreed rate.
They can be variable or fixed rates, yet the range will hinge upon stock market performance. The best part of this investment option for retirees is that it does offer a guaranteed return from the company you choose.
It’s hugely important to pay close attention to the fees involved. Some annuities have complicated features with high levels of fees. You should probably consult with a professional before you make any concrete investment decisions with this vehicle.
6. Peer to Peer Lending
Ever since it’s birth in 2005, Peer to Peer lending, or P2P lending, has grown rapidly. This form of lending is largely done online and matches borrowers and lenders in mutually beneficial loans.
It is essentially lending without the intervention of any banking institution. Most P2P lending options offer higher returns than the stock market, yet as you may know, the risk will depend greatly on who you lend your money to.
Final Words
In conclusion, there is no one best investment for retirees. The best investment plan for those who no longer work is a mixture of various investment vehicles in order to prepare you for a wide range of market climates.
The only thing for certain is that retirees must continue to invest long after their working days, to ensure that their nest egg lasts as long as possible. What’s important is that you don’t find yourself in a position where your nest egg doesn’t quite stretch as long as you.