Where Can Retirees Invest Their Money?

Retirees enjoy a surplus of time and resources, all paid off due to their hard work in their earlier years as employees. However, given the state of the economy right now and the various options that are available to retirees to pursue in regards to lifestyle, careers, and travel, generating money is still an important factor in their plans.

There are several ways for retirees to generate active or passive income, ranging from gold bullion investment programs to pursuing a long-time passion or picking up a new skill. There are also a variety of reasons retirees would choose to invest their hard-earned money—either to give them more options to travel, increase their liquid assets, or leave some to their younger family members.

Here are some investment options that retirees can consider:

Real Estate

Perhaps one of the most reliable places to get your investment back, real estate has become a popular choice for many retirees. Real Estate Investment Trusts, for example, have seen a surge of growth in the country over the past couple of years due to the increasing costs of housing and the demand for more affordable living spaces. Retirees can choose to either manage their property directly or just deal with the rent.

The good thing about real estate investment is that it can cover a wide variety of areas, not just limited to housing and urban developments. With enough capital, retirees can invest in commercial establishments, which have a higher rate of return on their initial investment and can even generate more profit over time.

Bonds

Bond indices

Another low-risk investment option for retirees is a bond. Paid to either a government or private individual, bonds are extremely good for retirees for the simple reason that the interest rate is fixed throughout the lifetime of the loan, and usually cannot be renegotiated. This gives them a secure source of additional funding as long as the loan is active, and can generate quite a profit given the interest rates at the time the bond was issued.

More than that, there exists a robust legal system to help lenders keep tabs and collect on bonds. Especially given that government bonds are often public records and can be collected until the full amount is paid, this presents a very attractive investment to any retiree.

Tech and Startups

Finally, a somewhat new and potentially profitable market would be the tech and startup industry. While run by the younger generations, these companies typically don’t have the purchasing power and resources that the previous generations have, which makes them good investment opportunities for any retiree.

Of course, the caveat is that you’ll need to be very careful with the type of company you invest in. While some companies can certainly give you back a profit, the future of tech is often uncertain and subject to many sudden changes. It’s best to consult with a professional investment planner or an insider in the industry and always commit what you are willing to lose because investing and business come with risks.