200) Why Retirees Should Still Invest their Retirement Fund?
Retirees want to preserve their hard earned money for their retirement use.
Most retirees know that their savings may not be enough to last them through their golden years.
Many prefer to keep their money into their banks savings account or their official retirement funds, for example, in their 3PF accounts.
The money is considered in a very safe place.
So, why should a retiree invests outside the safety of their official retirement savings funds?
Small Percentage
The official retirements savings plan are designed for retirement accumulation. You may had taken out to diversify to other investments earlier. However, the amount invested out are a small percentage only. Most of your retirement money are placed into safe investments .You may want to take out a small percentage to diversify.
Risk vs Return
Savings account are safe as it normally preserves your money. Investments are designed to give higher return than savings. Putting all your money into a savings account or savings fund, reduces the money returns potential. You may want to consider to take some risks to get higher returns. As the common saying,
Low Risk, Low Return; High Risk, High Return.
Long Term
Most investments need longer time to get the benefits. To get high returns within short term, you may need to do trading and speculation. Long term good investment normally give good positive returns. Know the difference between Investor and Trader.
Click the link below for more info:
http://highlevelrules.blogspot.com/2018/07/trader-vs-investor.html
Emergency Withdrawal
Understand where you put your money. Is it convenient to get back the money during emergency need? Some funds are not convenient to withdraw as you have to be personally present at their office. What if you cannot go the to the office personally? What if you are bed ridden or too sick to travel? Do you have people to help you to withdraw the money?
Diversify
As the old saying, Not to put all your eggs into one basket.
Do diversify your savings and investment. Different market conditions will affect different investments at different times. It is important to diversify into different asset classes, different regions, different currencies and different investment horizons.
Savings and Investments.
Plan your retirement budget. How much you need to use for the coming years. For short term requirement, you can place into short term savings. For mid term requirement, you can placed into low to medium risk investments. For longer term use, you can place into higher risk investments to get higher returns.
Click the link below for more info:
http://highlevelrules.blogspot.com/2017/09/need-based-portfolio-model.html
Do get more information and some advise on your investments. Even if you know something, it will still benefit you to have other people to share their knowledge. Even more important for you to get help, if you do not have much knowledge and experience in retirement planning.
Do contact and discuss with your Financial Consultant on the options available for you.
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