After decades of working and saving, retirement is perceived by many as freedom from responsibilities. It’s a time when we simply want to relax and enjoy whatever there is that life has to offer. But retirement also spells uncertainty among retirees. It is then important for us to prepare of the future. Here are top 3 strategies that can help you fund your retirement.
- Immediate Annuities
Buying an immediate annuity is the fastest way to convert a huge sum of money into a continuous stream of income that will last you a lifetime. Retirees invest their income in purchasing immediate annuity as it it guarantees steady income, is predictable, and is not in any way affected by declining interest rates and failing stock prices.
Income payment from immediate annuities however will not increase over time. They are complicated products, but if you are simply looking to fund a simple life after retirement, this investment channel will work best for you!
- Systematic Withdrawals
One smart strategy that you can employ after retirement is making systemic withdrawals instead of pulling out all your savings at one go. This even applies to people who have millions of dollars in their bank accounts. Taking out money that you need once at a time and letting the rest grow is one of the most practical strategies to make during your golden years. Make sure to match your withdrawals based on your needs, and never spend more than what your monthly or weekly budget can afford.