Stock Trading Account

Financial planning can often seem confusing and complicated, and for that reason many individuals may choose not to invest, instead relying on Social Security alone to provide for their retirement needs. However, sound and objective financial planning is essential in order to ensure that individuals will have the finances they need to cover their expenses later in life. Individuals, especially those close to or at retirement age, need to have a way to both generate and manage income. This is where an investment advisor can help. Investment advisors can provide individuals with investment management services and can also assist individuals with financial management decisions. Because many individuals wonder whether Social Security benefits will be enough, how much money they will need to save, what will happen if they cannot save enough money, and if it is too late for them to begin investing, investment advisors understand the need to make advantageous financial decisions and they are ready and willing to lend a helping hand.

Investment terms such as asset management, fund management, wealth management and portfolio management can seem overwhelming and complex to those not familiar with investment options and financial management strategies. These are terms used in investment management, and while the terms may vary the overall objective is the same. The professional management of financial products such as stocks and bonds to meet an individual’s investment goals is the purpose of investment management. Investment advisors can offer advice on various investment options such as property investment, online investment, and diversified investments. Investment advice can also include information on safe investments, tax efficient investments, and best investments based on each individual customer’s personal financial situation.

There are many and varied investment companies just as there are investment options. For example, Fidelity investment offers products such as retirement income investing and fixed income investing. These products are tailored to the needs of older adults. This type of investing includes: bonds, mutual funds, CDs, guaranteed income annuities, and dividend-yielding stocks. Fixed income investing generally deals with bonds, although the bond market can often be unstable and unpredictable. The types of bonds used in fixed income investing include: taxable, high-yield, and national municipal among others. There are many other investing strategies and products available from low-risk to high-risk investment options. Because Americans are living longer lives than ever before, it is even more important to participate in solid financial planning now – and a reputable organization, such as I AM, LLC can help you create a financial blueprint for your future.

When the economy plunges into a recession, are you prepared to weather out the storm with your retirement savings?  Retirement is the time to enjoy the money you have earned and the wealth you have grown – not pinch pennies and create tighter budgets.  If your retirement wealth consists of mostly savings, instead of income-generating investments, you could be losing money.

“Saving” your money could be losing you money

Why would you lose money in savings?  Inflation plays a large role in the value of your dollar.  If you are spending more money on items such as gasoline and groceries, while receiving little or no interest on your money, the value of your savings shrinks. 

In addition, given that the life expectancy in America continues to increase, how can you ensure that your savings will be sufficient for your entire lifetime?  Only through consistent retirement income can you guarantee that you will have sufficient funds even if you live to be a centenarian. 

Although having a savings account is wise, it is also better to have your retirement wealth spread out between savings and other investments that deliver retirement income to you each month.

Diversified income among various investment vehicles

Your investment strategies may lean toward safe investments like CDs or Money Market accounts.  Both are very safe places to keep money and give a small return on your dollar greater than the traditional savings account.  Money market accounts are very liquid and allow you quick access to your money.  If you don’t mind placing larger sums into a federally insured CD account for 6 to 12 months, you can receive conservative returns as well that are greater than the standard savings account. 

Another great way to bring in retirement income is with real estate investments.  If you have the capital available, you can purchase an investment property and rent it out.  With the right planning before you buy, you should be able to cover all your property expenses and receive a decent monthly retirement income return on your investment, not to mention good tax advantages to owning investment property.

Another way to invest in real estate that is more conservative and has less risk is with a real estate investment trust, or REIT.  REITs are akin to being the mutual funds of real estate.  Each investor in a REIT receives a certificate of ownership depending on the amount of the investment.  With a larger number of investors, REITs are able to purchase and manage a large commercial real estate portfolio.  The profits earned by a REIT are returned to the investors on a regular basis much like dividends.  And similar to owning a property outright, REIT members get tax advantages as well.

There are a myriad of ways to generate retirement income that can be catered to your individual needs and risk tolerance levels.  Employing professional investment advice about your retirement income is a smart way to maximize the returns on your future planning. 

Retirement income takes continual planning and management.  Make your money work for you in retirement.  Take that extra step and make a retirement income plan today and visit www.kenhimmler.com for more tips to help.