Investment After Retirement

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Investment After Retirement


2011

By Ric Dalberri, Founder of Retirement USA

So, here it is, the big ‘R’. You’ve spent a lifetime
working, setting monies aside for investment after retirement. Now you’re here!
What to do? Most likely, your investment after retirement will consist of a
pension (?), 401(K), or IRA and Social Security. Statistics say that the
average savings in a retirement plan is $100,000.

After you’ve figured out your expenses, down -sizing, making
changes, you must figure income including a part time job if necessary. Once
you have all of the particulars figured out you can give attention to how you
are going to manage your investment after retirement.

Two of the main components of investing after retirement is
to be conservative and use your funds in a tax advantage way. Too many retirees
get fooled into thinking that they can invest in investments that promise high
returns usually in a short period of time. Can you say Bernie Madoff? We have
heard the saying, “if it’s too good to be true, is usually is”. We can’t let
greed be our guide. Look for investment after retirement that are relatively
stable such as bonds, c.d.’s, money market accounts and annuities. These are
not sexy but will keep you safe. Remember, each of them has their own
definitions.

Its up to you to see what fits your risk tolerance. These
should not have risks associated with them.

As far as taxes are concerned when investing after
retirement, use funds that have the lowest tax liability. This strategy allows
you to maintain your principal balance at as high a level as possible because
the more taxes taken out of your withdrawals, the more principal you will have
to withdraw to meet your expenses.

First investment after retirement is to withdraw any monies
from a non- retirement savings account. You’ve already paid taxes on these
funds, so withdrawals will not cost you anything. Once these are depleted, go
to your 401(K) or IRA. The best way to do this is to roll these funds into an
annuity and start receiving a monthly income. You will enjoy a safe monthly
income with guaranteed income while investing after retirement.

Remember, investments after retirement are probably more
important to you than ever before. Consult a financial specialist, tax attorney
or C.P.A . This is your retirement. Be sure that investment after retirement
will be your best investment.