Just because you’ve saved up for retirement doesn’t always mean you’ll have the funds necessary to get you through it. It’s hard to plan for everything that can come with retirement, especially higher medical bills. One thing to consider is that when you’re fully retired, you’re living on a fixed income. If you’re wondering how you can build your retirement account and make your retirement easier—and better—it may be worth considering these different investment opportunities.
Short Term Investments
Short term investments typically involve a lower risk with a lower reward. Not many major companies on the stock market experience drastic fluctuation day-in and day-out, but many of them consistently increase or decrease. Making short term investments in the stock market on a growing stock opportunity can give you short boosts to your funds. Talk with your financial advisor about possible short term investment opportunities worth making now.
Diversification is the key to a successful investment portfolio, no matter what your age. However, it becomes even more important after retirement when you’re working with a fixed income. Your investments should be balanced across the board but, more importantly, should reflect your tolerance for risk. It all comes down to personality and what is needed to live how you want to. A more conservative portfolio might focus more on levelling out the amount spent on stocks and bonds, whereas a more aggressive portfolio might consist of a higher percentage of stocks than bonds. The most important factor is understanding your individual situation and needs, so make sure you talk with a financial advisor before putting together any portfolio.
Selling a Life Insurance Policy
Many seniors own life insurance policies that they no longer need or want. What’s more, many seniors are retiring with barely enough money to live on, which makes it more difficult to justify premiums on those policies. A common misunderstanding is that it’s better to let a policy lapse, or surrender it and collect the small cash value in the policy. Selling a life insurance policy through a life settlement can give you as much as 7 times the cash surrender value eliminating premium payments on them. Many seniors find this to be a great way to use the assets available to them to increase their retirement funds immediately.
If you’re interested in making your unwanted life insurance policy work for you right now, check out our qualification calculator to see if you qualify for a life settlement!
This article was provided by Leo LaGrotte, President of Life Settlement Advisors. Learn more about life settlements and see if you qualify by visiting their website at Life Settlement Advisors or calling them at (888) 849-0887.