Investment Plan for your Retirement
There are so many investment plans available out there. The following points will guide you in choosing the one that is right for you with fewer risks and compromises to manage. The points are based on the fact that, after a while, they will be appreciating commercial companies 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.
Rentista- is the person on whose life the contract depends.
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 a 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, up to its entire investment. Treasury bonds are safe, medium- to long-term investments that typically offer you an instant payment every six months over the bond’s maturity. Treasury bonds have a fixed rate, which means that the interest rate determined at auction is maintained throughout the life of the bond. This makes Treasury bonds a predictable long-term source of income.
3. Exchange Traded Funds (ETFs)
Exchange-traded fund is an investment fund that trades on stock exchanges just like stocks. An ETF holds assets such as stocks, oil futures, currencies, commodities or bonds and generally operates with an arbitrage mechanism to keep your trade close to its net asset value, although deviations may occasionally occur. These assets are divided into shares in which shareholders do not directly own or have direct rights to 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 independently buy and sell shares through share trading platforms. You can invest directly and indirectly in shares. Direct investment means that you buy shares of a company and become a shareholder, while indirect investment means that you invest in more than one company, thus spreading risk. 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 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 whenever 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 a retirement investment plan that should never be overlooked. Landon said ‘find what’s going to give you the most 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 the 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 drive investment. Research different financial organizations and try to compare their payment and financing terms. You can still choose to become a real estate trader. 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 fund pool 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 employee upon 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 because 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 building the economy even in old age.