Search:

Would you like to contribute to this site? Bonds Menu Submit an Article Submit a Tip Place your Ad Add URL Bonds Questions? Contact Us  About Bonds   Bond Types   Investing In Bonds   High Yield Bond   Investment Bonds   Bond Investing Tools   401K Bonds   Municipal Bonds   State Municipal Bonds   Muni Bonds   Treasury Bonds   Government Bonds   US Treasury Bond   Premium Bonds   Corporate Bonds   Savings Bonds   US Savings Bonds   Savings Bonds Rates   Savings Bond Services   Series Savings Bonds   Series EE Bonds   I Bonds   Interest On Bonds   Bond Calculator   Bond Services   Buy Bonds   Trade Bonds   Redeeming Bonds   High Yield Savings   HYIP   High Yield Investing   About Investing   Stock Market   Stock Prices and Quotes   Company Stocks and Bonds   Stocks Advice   Stock Services   Tax Bonds   Bail Bonds   Bail Bonds Agency   Investing Help

Return To Bonds Article Archive   How To Build Retirement Security By Henry Clark Knowing if you have saved enough is just part of retirement security. The other part involves creating an investment scheme that will create income without touching your savings. If youre past 40 or in your 50s, things are a little more difficult. Its difficult to predict the amount of income that youll need during retirement. The needs and interest rates are bound to vary during that period. In an investment plan, the traditional advice of putting your savings in dividend-paying stocks and corporate bonds cant be relied on anymore. A portfolio like that tends to hurt over time and risk using your savings too soon. Have enough savings. To determine if you have saved enough, there are web tools available. Make sure that you understand the assumptions in the tool. You may also hire financial planners to do the numbers for you instead. Look for one that uses the latest income-planning tools. Do not make unrealistic assumptions on the returns of the savings and the investment incomes. Worst, do not make bad assumptions on your spending. Be prepared for deep and long recessions. Assume that youll spend at least as much as you do now. Create a portfolio for both growth and income. As soon as you have enough saved, you need to set up a system that allows you to put your money into stocks for the long-term, while putting away enough for fixed income. Many financial planners advise you to place your retirement money into three portfolios. 1. The first portfolio is for expected expenses next year. 2. The second portfolio is for fixed income investment whose income goes to the first one 3. The third portfolio is for stocks that will grow and go into the first two A constant flow of income can be generated when the fixed-income portfolio is diversified into investments with varying maturity. If youre thinking of how much money to put in, carefully evaluate your risk tolerance and needs. This helps you determine how much to save and how much cash should be available. This is a critical decision, because it can make or break your retirement. Try to get the most from your fixed investments. The classic approach is to diversify your fixed-income portfolio. Treasury bills and investment-grade Corp-bonds of different maturities are the most commonly used vehicles. Here are some alternatives: 1. Treasury bills 2. Corporate bonds 3. Real-Estate investment trusts 4. Convertible bonds 5. Municipal bonds About the Author: Henry Clark can show you how to make the most of your retirement years. Visit his website and learn more http://www.push-button-online-income.com/retirement

Get your Bonds questions answered... Subscribe to our Bonds Newsletter FREE! Your First Name: Your Email Address: Enter above security code

Home  |   Bonds Blog  |   Ask the Bonds Expert  |   Bonds Archive  |   Bonds RSS Feeds  |   Advertise  |   Sitemap