02 May Time to Retire!
If you’re among the millions of people from the Baby Boomer generation who are set to retire within the next decade, making sure that your financial house is in order is obviously very important. Due to the recent financial crisis, investors have seen their retirement stock market portfolio take a drastic hit but fortunately, recover somewhat in the past 2 years. I’m sure nobody wants to go through that type of experience ever again especially if you are close to reaching your retirement years. However, it doesn’t really make sense to put your money in the bank that’s earning nothing in interest or in a T-Bill that’s giving you a very low return. Maybe you’re thinking Real Estate but home prices are still dropping especially in certain parts of the world. So what do you do? Well, the best alternative is still the Stock Market. However, what you may want to focus on is stocks that pay you for owning their company stock. There are public companies who share the profits that they make with their investors in the form of a dividend that they pay once a year. Also, there are stocks that are Real Estate Investment Trusts (REITS) which invest in income producing real estate such as shopping malls or residential apartment buildings. A lot of these REITS pay a monthly yield on your investment. If you’re scared of venturing back into the stock market, look for these types of stocks to put into your retirement portfolio.