Your golden years are upon you and you’re confident that you’ve done everything right especially when it comes to saving for retirement. While many people at this stage are already taking it easy and slow, others have found more productive and financially fulfilling ways to make the most out of the opportunities and resources available to them.
The few years before you finally retire are the perfect time to invest, not only as a way to double your savings but to secure your retirement future, free from the worries of risks and rainy days. However, you also have to keep in mind that this move can be risky – unless you choose the right investment options available.
Mutual Funds, for instance, tops the list in the most preferred pre-retirement investment options out there. They are managed accounts and have been a primary investment choice designed to be the ideal retirement accounts. Basically, they’re portfolios made up of bonds and/or stocks.
There are specific types of mutual funds that are considered as “retirement income funds.” They are strategically developed for post and pre-retirees, with the main goal of preserving the investor’s assets, income, and growth.
Another option that you can consider is a Real Estate Investment Trusts (REITs). As the name suggests, this investment option focuses on real estate assets such as actual properties, mortgage-backed securities, as well as mortgages on commercial and residential properties.
According to experts, investing in REITs should be a part of one’s retirement process. Aside from the outsized dividend yield, there are a couple of tax advantages that real estate can enjoy and it includes depreciation. Presented as a trust arrangement, it’s safe from double taxation.