Although many retirees live a frugal lifestyle, spending money can help save money in some instances. Indeed, you shouldn’t stop investing once you reach your retirement years. Investing can be a great way to further increase your independence and provide for your future. Consider the following four investments worth the money for retirees and soon-to-be retirees.
Medicare Supplement Insurance
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Medicare Supplement insurance is extra coverage that you can purchase. People use it to augment their regular insurance so that certain costs are covered. This type of coverage can be an investment if you’re exposed to new risks as you age that isn’t covered by an existing insurance policy. A notable benefit is that you can still keep any existing policy and premiums without having to go through the underwriting process from the beginning.
Investing in supplemental care is a good idea for many reasons. For example, you can find Medicare Supplement plans to help cover copays, dental and vision insurance, and health insurance while traveling. Especially in retirement, these additional services can be life and budget saving.
Investing in the stock market can be a way to generate revenue in retirement, but it’s important that you invest in a broad mixture of assets. It’s also vital that you keep your specific needs in mind as a retiree. If you want the best chance at making returns through this type of investing, you’ll seek low-risk stocks in low-volatility markets.
In general, you’ll want to avoid penny stocks, day trading, foreign exchange markets, and binary options. These high-risk niches are recommended only for people willing to put in time not only learning how these markets work but also following current events and trends that can cause price fluctuations. This hands-on approach isn’t ideal for many people — especially those who would rather relax and let their investments grow.
If you prefer investments that will make money more reliably without needing constant scrutiny, look into preferred stocks. These stocks don’t come with voting rights — a benefit of common stock ownership — but usually have a guaranteed fixed dividend that you’ll receive for as long as you hold the investment. A dividend is a portion of the company’s annual profits.
Securities are a type of investment categorized as equities or debts. Essentially, you purchase securities and become an investor. Companies use securities as a way to raise capital. You make money from securities through interest or by selling your investment when the price fluctuates in your favor. Some types of securities (residual securities) can also be changed to common stock, convertible bonds, or another type of investment.
Overseas securities are securities that you would purchase from overseas companies. You’ll often find more exciting opportunities for growth from your investments when you look internationally, but you don’t necessarily take on additional risk. You’ll still want to do your due diligence before backing a company, but the overseas market is promising because some countries have higher growth rates than already developed areas.
Invest in your health by eating a better diet and exercising. Taking this approach has some obvious benefits from a wellness perspective, but taking care of your health is beneficial in many ways.
- Lower insurance costs: Many life and health insurance plans are contingent on how active and healthy you are. Some plans lock in premiums, meaning your health may have been verified years ago and you’re set on insurance. However, some people face the end of their insurance contracts or have to renegotiate for lower costs or more coverage.
- Cherish your retirement: Retirement should be a time when you’re free to pursue your ambitions and explore the world. Unfortunately, if you’re in poor health, being active could be impractical or impossible. Stay healthy so you can cherish your retirement.
- Longer life expectancy: Looking after your health will give you more time to pursue your goals and spend with your loved ones.
Being frugal is a fantastic way to enter retirement. But your search for good investments shouldn’t stop at the end of your career. Use this new chapter to find promising opportunities to make the most of your retirement.
About The Author:
Ryan is a freelance writer primarily focusing on tech and health topics. When she’s not writing, she enjoys going to the beach and spending time with her family.