Is Stock Market Investing Good Enough For Seniors?
After retirement a senior citizen has to worry about a lot of things in present economic situation. It’s not just their living expenses and health care expenses that needs to be taken care of, they have to worry about the inflation too! Due to inflation these expenses have increased over the years and will keep on increasing. In such situation it is not enough to rely on the fixed investment.
One has to invest at any high yielding investment options and stock market is one such place that can be considered. Now. Most of the time senior citizens are afraid of the ups and downs of stock market. They are worried about the value erosion and the volatility of the market. Here are few pointers for the seniors so that they too can participate in the marker and not get their blood pressure high.
Have a disciplined approach
By disciplined approachit means that you must invest with certain limit to the exposure to equities.This limit will depend upon the amount that can be set aside that will not berequired on any immediate basis. About 20 to 25% of the total corpus must bespend in equities rest should be invested in secured bonds. Consider getting a 2019 medicare supplement plan to cover your healthcare needs.
Go for a pooled investment approach
It is always advisable to invest in collective investment schemes like the mutual funds. These collective investment vehicles allows to diversify the risk of investment as they further invest in diversified schemes. These funds are controlled by experts and the risk associated with them are minimal.
Spread the investment time horizon
After retirement you get a largepool of money. This is not only your retirement benefits but the result of theplanning that you had done when you were young. Now, that you have the fund inhand do not rush for investing them. Take your time and go for a systematicapproach for investing the funds. You may find that few new options will beavailable soon that may be less volatile. You can take time and then investthere. Make plans and you will get good returns.
Look for high liquidity in investments
When you invest in stock market you have almost liquid fund that is opposite of the traditional investments. There you have lock-in periods and you have to pay penalty for pre-mature withdrawals. When you invest there you have almost liquid fund that is available when you require them badly.