Just because the sun has set on your working years, doesn’t mean you should stop planning for the future. There will always be cool new projects that interest you and fun trips to be had that need to be funded. Exciting investment opportunities can help you pay for them.
Firstly, there are a lot of con artists working to separate you from your hard-earned money. This list of red flags outlined by the government can help you not to fall prey to scammers. Some warning signs mentioned are “It sounds too good to be true,” and pitches that include small favors like lunches, or the promise of guaranteed returns.
Remember back in the day when you had to shell out money every month to keep a temporary roof over your head? It turns out that being on the other end of that transaction can be quite lucrative. If you take advantage of your good credit score and buy a duplex or some other easy to maintain rental property, you can collect those rent checks for years to come. Just make sure you have savings already built up in case you need to replace a furnace or repave a sidewalk.
These government issued investments have been tried and true for decades. The time it takes to see a return can range from a month to 30 years, depending on the category that best fits your needs. Treasury bills mature the fastest and can be bought starting at $100 dollars. Treasury notes can also be bought in increments starting at $100, but they mature at time periods that range from 2 to 10 years, depending on what you purchase. Treasury bonds are also available starting at $100, but they are available in terms of 20 and 30 years. Mark Cussen at Investopedia says, “The greatest advantage of Treasury securities is that they are, of course, unconditionally backed by the full faith and credit of the U.S. government. Investors are guaranteed the return of both their interest and the principal that they are due, as long as they hold them to maturity. However, even Treasury securities come with some risk. Like all guaranteed financial instruments, Treasuries are vulnerable to both inflation and changes in interest rates.”
Municipal bonds or Munis, are issued by state and other local governments to fund infrastructure projects. Sec.gov explains, “Generally, the interest on municipal bonds is exempt from federal income tax. The interest may also be exempt from state and local taxes if you reside in the state where the bond is issued. Bond investors typically seek a steady stream of income payments and, compared to stock investors, may be more risk-averse and more focused on preserving, rather than increasing, wealth. Given the tax benefits, the interest rate for municipal bonds is usually lower than on taxable fixed-income securities such as corporate bonds.”
Don’t let living in your golden years stop you from planning for a stellar future. Saving and investing doesn’t have to stop after retirement.