You want to start planning for your retirement and are looking to invest your money to get you settled when you reach that point. Investing now can make the days after you retire secure and comfortable. Here are a few options that you should consider.
Investing In Annuities
One of your options for retirement planning is annuities, such as fixed deferred annuities. This sort of investment is between an insurance company and the customer. The company pays out a specified return over the given period of the annuity. While you can get your payments at any time, most people wait for their payout until retirement.
Playing the Stock Market
A risky but possibly profitable way to save for retirement is to purchase stock. When you do this, you are buying a small part of a company. If the company does very well, they you get money back to reinvest. However, if the company does poorly, you will lose money. This also can happen if the stock market drops and affects all the companies involved.
When you purchase a bond, you are giving a loan to another entity, which could be a company or the federal government. Interest is paid against that loan until the value reaches the amount you borrowed to them. You can cash it out early and receive a partial amount back or let it go the length of the loan and get the money that you invested. An advantage of this is that you get what you paid instead of risking a loss if the stock market fluctuates.
Getting an Expert
The more common form of retirement investment is a mutual fund, which is a combination of purchasing stocks and bonds. A financial expert analyzes the market and chooses the correct mix for the amount you invest and what they believe will give you the best return.