Safe Investment Options for Retirees
For any elderlyperson the fund that they own is everything. This is mainly because after theage of 65 they do not work anymore and thus their source of income is mainlytheir savings and pension. Now, sometimes pension may not be enough to meet theregular expenses. What can be done at such situation is investing their savingsin such way so that they can get enough return. Now at this age there are many elderly people who are not interested in taking risk and they look for safe investments that will give them decent return. Here are few such investment ideas.
Certificate of deposits
CDs or certificateof deposits are issued by banks. They normally offer you a higher interest ratecompared to the savings account. They are time deposits and you get interest onthe amount deposited. This interest can be withdrawn altogether after theexpiry of the time period or you can take it after regular interval. After thematurity of the CD you will get back the principal amount along with theaccrued interest. However, there are certain problem with CDs. They are notliquid as savings and thus if you need them you cannot mature then withoutgiving penalty. There are different types of CDs available and you can investin one that is preferable and convenient for you. Find a medicare advantage plan 2019 to stay healthy.
Money market funds
Again the moneymarket funds are also an investing and saving option that are offered by thebank. These funds are regulated by the Securities and Exchange Commission atdifferent places. These funds maintain a good return but three is no guaranteethat they will be able to maintain this return always. Thus, there is some riskfactor associated with them but they provide good return normally. If any investor wants to redeem back their investment from the money market funds then they will be paid based on the NAV of the fund.
Government bond funds
At different countries the Government also issues bind funds. These are actually mutual funds that are controlled by the government. These funds in turn invest in different debt instruments like T-notes, T-bills, and mortgage back securities. These bonds are best for the low risk investors. The risk associated with these bonds are less as the funds where they are invested are quite safe. These bonds are highly liquid too and thus are good option for investment.