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Picking Safe Investments for Retirement
There is a difference between investments that are currently making money for you and investments that will be safe into your retirement years. A sad example of investors who did not exercise due diligence with their investments is the Bernie Madoff pyramid scheme. One hundred seventy-six individuals, banks, pension funds, and charities were invested with Madoff and happy to be getting a great return on their money. When the Madoff house of cards collapsed there were $65 billion in faked gains and investors lost about $18 billion of their investment capital. Picking safe investments for retirement is a skill separate from making money in stocks, real estate, and other investment vehicles. The fact of the matter is that when you are retired you will want to enjoy retirement and be spending all of your time watching your portfolio. How can you invest safely for retirement and not end up like Madoff’s clients?
Picking Safe Investments for Retirement: What Are Some Choices?
Inflation Protected Treasuries
AAA Corporate Bonds
Real Estate Investment Trusts
Picking Safe Investments for Retirement: US Treasures, Inflation Protected
In our article about how to invest without losing any money, we mentioned US Treasuries.
US Treasury bills have maturities of a year or less. US Treasury notes have maturities from two to ten years. And, US Treasury bonds have maturities of ten to 30 years. Each of these investment vehicles is backed by the “full faith and credit” of the US government. The risk of loss of any of these if held to maturity is nil.