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 will be relatively stable such as bonds, c.d., money market accounts and annuities. These are not sexy but will keep you safe. Remember, each of them has their own definitions. It's 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.
By: Ric Dalberri
Ric Dalberri is a graduate of Columbia State University & has been involved in his own business (sold) employing over 100 people. Ric was also a top producer as a Financial Specialist for over a decade with one of the largest financial institutions in the U.S.
Ric is the founder of Retirement USA which provides complete solutions for your lifestyle. Please visit and sign up for the free newsletter. http://www.retirementusa.com/
Tuesday, January 11, 2011
Sunday, December 19, 2010
Real Estate Investment Strategies
Real estate has been considered since time immemorial as one of the most stable investments one could make. Properties always appreciate in value especially when well maintained. Real estate is also a good investment as it develops discipline in the investor since your assets are now not easily liquefiable.
Furthermore if you invest in a property and let it out, you are assured of a stable monthly income. It is therefore important to apply one of the many effective real estate investment strategies available.
Bargain purchase is one of the best real estate investment strategies. In this strategy you buy property for less than its market value. If you use the right research channels you can get property at a price that is 20% less than its market value. However, getting property being sold at a lower value than its estimated market value can be very difficult.
One good place to being your search for cheap property is in auctions. Banks and other lenders normally sell properties that have been put up for foreclosure in public auctions. As lenders are not particularly interested in making a profit, they will sell the houses to the highest bidder. Their primary concern is recovering the money lent out as fast as possible.
The second of great real estate investment strategies is the increase-value strategy. In this strategy, property is purchased at its market price. However, not just any property is purchased.
The property must have unrealized potential upon purchase. Your challenge is to make the necessary improvements to bring its value up by at least 20% in not more than 6 months. The six month period is given as a guideline to ensure that the investment is worthwhile.
One of the worst real estate investment strategies is buying property with the hope that it will appreciate on its own. This is a strategy that is used by most people. This strategy is dependent on market wide appreciation of property.
However, it is faulty in that there is no means of forecasting which regions will appreciate in value. You may buy property in an area that will become a slum or depreciate in some way or another and end up selling your property at a loss.
By: Martin Njogu
Martin has been writing web content for close to two years now. To get quality and affordable SEO article writing service or to hire a SEO writer, http://seoarticlewritingpro.com/
Furthermore if you invest in a property and let it out, you are assured of a stable monthly income. It is therefore important to apply one of the many effective real estate investment strategies available.
Bargain purchase is one of the best real estate investment strategies. In this strategy you buy property for less than its market value. If you use the right research channels you can get property at a price that is 20% less than its market value. However, getting property being sold at a lower value than its estimated market value can be very difficult.
One good place to being your search for cheap property is in auctions. Banks and other lenders normally sell properties that have been put up for foreclosure in public auctions. As lenders are not particularly interested in making a profit, they will sell the houses to the highest bidder. Their primary concern is recovering the money lent out as fast as possible.
The second of great real estate investment strategies is the increase-value strategy. In this strategy, property is purchased at its market price. However, not just any property is purchased.
The property must have unrealized potential upon purchase. Your challenge is to make the necessary improvements to bring its value up by at least 20% in not more than 6 months. The six month period is given as a guideline to ensure that the investment is worthwhile.
One of the worst real estate investment strategies is buying property with the hope that it will appreciate on its own. This is a strategy that is used by most people. This strategy is dependent on market wide appreciation of property.
However, it is faulty in that there is no means of forecasting which regions will appreciate in value. You may buy property in an area that will become a slum or depreciate in some way or another and end up selling your property at a loss.
By: Martin Njogu
Martin has been writing web content for close to two years now. To get quality and affordable SEO article writing service or to hire a SEO writer, http://seoarticlewritingpro.com/
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