Investment After Retirement

in Retirement

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 foiled 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.

 

 

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ric dalberri has 19324 articles online and 24 fans

Ric Dalberri is a graduate of Columbia State University & has been involved in his own business (sold) employing over 100 people. As

well as being a top producer as a Financial Specialist for over a decade with one of the largest financial institutions in the U.S., Ric has many years experience in sales and  management. Ric was also a mentor in

the financial arena as well as a volunteer teacher for Junior Achievement.

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Investment After Retirement

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This article was published on 2010/09/17