Investment Plan for your Retirement

There are so many investment plans available out there. The following points will guide you in choosing the right one for you with fewer risks and commitments to manage. The points are based on the fact that, after a while, they will be appreciating business ventures for their retirement.

1. Annuity

An annuity is a plan whereby an insurance company, in exchange for the purchase price, enters into a contract to pay an agreed amount of money each year while the beneficiary is still alive.
Renter- is the person whose life depends on the contract.
Annuity: is the amount of money paid to the beneficiary.

The benefits of an annuity, especially when used in connection with retirement, is that it would ensure that the retiree has an income for a convenient number of years. The best type of annuity is the deferred annuity because it gives you benefits for life.

2. Jumps

A bond is a loan to a government or corporation, whereby the borrower agrees to pay a fixed amount of interest, usually semi-annually, until fully invested. Treasury bonds are safe, medium- to long-term investments that typically offer you an instant payment every six months during the bond’s maturity. Treasury bonds are fixed rate, which means that the interest rate determined at auction is locked in for the life of the bond. This makes Treasuries a predictable source of income over the long term.

3. Exchange Traded Funds (ETFs)

An exchange-traded fund is an investment fund that is traded on stock exchanges just like stocks. An ETF holds assets such as stocks, oil futures, currencies, commodities, or bonds and generally operates on an arbitrage mechanism to keep trading close to its net asset value, although deviations can occasionally occur. These assets are divided into shares in which the shareholders do not directly own or have direct rights to the investments in the fund.
ETF shareholders are entitled to a proportion of the earnings, such as interest earned or dividends paid.

4. Inventory

In Kenya, the main stock market is the Nairobi Stock Exchange (NSE). A stock market is a place where corporations and other financial institutions go to buy and sell bonds and other derivatives. NSE acts as a third party broker and allows investors to buy and sell shares independently through share trading platforms. You can invest directly and indirectly in stocks. Direct investing means that you buy shares in one company and become a shareholder, while indirect means that you invest in more than one company, therefore spreading the risk. The indirect investment is done through an open fund and the money is safe, so even if the company stops paying, the money is still safe.

5. Mutual Funds

Mutual funds are some of the most overlooked, but probably the easiest way to invest in much more than just stocks and bonds. A mutual fund is a pool of money, often from like-minded investors. You can sell your shares when and if you want. All fund shareholders benefit from the fund and share in any losses. There are five categories of mutual funds where you can choose the one that suits you best.

6. Real Estate

Real estate is one retirement investment plan you should never overlook. Landon said ‘find what’s going to give you the biggest impact on your back.’ Front real estate is a very lucrative opening. However, you have to research the market and know the current and emerging trends in the sector. The location of real estate is very important and must be selected well. Some of the prime locations may be near universities, developing cities, or large company sites. In any investment, capital becomes the main organ to promote investment. Research different financial organizations and try to compare their payment and financing terms. You can still choose to become a real estate dealer. A real estate dealer is one who buys property with the intention of holding it for a short period and selling it for a profit.

7. Pension Plan

The pension plan is a retirement plan that requires an employer to make contributions to a separate pool of funds for the future benefit of a worker. The pool of funds is invested on behalf of the employee and the investment earnings are given to the worker at retirement. In Kenya, even the self-employed can continue to contribute to the social security fund to help them when the time comes.

Retirement is a process that every living worker must accept. Retirement is like any other investment, but more crucial since when you retire, your productivity declines due to health and age. You can start now, and when you retire, you’ll have important benefits that can help you live a decent life after retirement. Take a step today and plan to invest for your retirement now and be a happy retired worker living a good life and developing the economy even in old age.

Leave a Reply

Your email address will not be published. Required fields are marked *