For many retirees, gone are the days of risk-taking and gambling with their money. At this stage of life, retirement may just mean peace of mind and security during their final years. With peace of mind, there is more time to spend with your family or participating in activities that give you joy. Having a steady, low-risk income is essential for long-term security. A financial planner in Orlando could reassure you and assess your personal income preferences and find streams of income that are low-stress, and above all contain minimal risk for you and your assets.
Read about the different low-risk income options for retirees to help determine which ones align with your values.
Dividend-Paying Stocks
While dividend-paying stocks are not as flashy as traditional stock trading, they can be a great option for retirees looking for cash flow that is not impacted by the highs or lows of a business’s finances. Many companies that provide dividends are in the industrial or energy industry, but they can be found across a wide spectrum of industries. One risk of dividends is that in times of crisis like the pandemic, some businesses may pause dividend payouts. However, historically they are still a smart route for those who want an income stream that is steady and reliable. Above all, dividend-paying stocks can continue to diversify your portfolio investments, while still providing comfort in extremely volatile markets.
Fixed Annuities
Annuities are the steady sail that keeps you afloat when economies go through turbulent, unpredictable storms. A favorite among retirees, fixed annuities are a reputable low-risk option when determining different income outcomes. In exchange for some initial payment, fixed annuities will have some upfront return on your investment. This adds interest credit at a fixed, or predetermined, rate. Because annuities are so low-risk, even if the market is unsteady your payments will never go down. To determine if a fixed annuity is right for you, speak with a financial advisor who can assess your personal financial goals.
CDs (Certificates Of Deposit)
CDs are important for retirees who want to maintain a balanced stream of income past their peak working years. As a product sold by varying finance institutions, certificates of deposit pay you an interest rate every year during the continuation of your investment. Some CDs even pay competitive yields due to rising interest rates. These yields pay higher than internal bank savings accounts, making it an incredibly low-risk option for retirees who want to build a ladder of deposit investments.
Conclusion
While some younger folks may be ready and willing to take high investment risks such as cryptocurrency, many retirees would prefer to have guaranteed income that is not subject to the extreme market volatility we’ve seen over the years. Dividend-paying stocks, fixed annuities, and CDs offer stability and security for the years to come. The key to maintaining low-risk investment is consistency, reliability, and a balanced personal finance portfolio. Once you take the needed steps with a financial advisor, you can sit back and enjoy the fruits of your labor.