Investment Strategies for those 50 and over

Investment Strategies for those 50 and over

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With the average life expectancy today being 83 years, folks 50 and over will have many retirement years ahead of them. Unfortunately, Social Security checks and pension plans are getting smaller or being phased out, making a sound investment strategy more important than ever. While there are many different investment avenues people can choose, some are better than others regarding their safety, return on investment and long-term stability.



One of the best investments those 50 and over can make is in Treasury bonds. For those who want safe, reliable investing you cannot go wrong with Treasury bonds. The United States government has never defaulted on a T-bond, making them some of the most popular investments the world over. For those 50 and over, these bonds can provide a steady source of income for many years, and can be acquired through a variety of means including mutual funds or by purchasing individual bonds. Most financial advisors agree T-bonds should make up a significant portion of an investment portfolio, since capital preservation is the most important thing at this stage of the game.


Another great investment for baby boomers is Certificates of Deposit, better known as CD's. Offering a higher yield than T-bonds, they are often purchased through a bank and are insured by the FDIC for up to $250,000. A wise strategy for those investing in CD's is to purchase several different ones and use a laddering strategy, where the maturity dates of the CD's are spread out over a four or five year period. This strategy also allows investors to take advantage of higher interest rates as they become available, rather than having all their CD's stuck at only one interest rate.


When it comes to location, location, location of a person's retirement money, purchasing real estate is a great way to make the money grow. With the number of foreclosed homes available in today's housing market, there are numerous opportunities for investors to pick up great homes at bargain prices. If a person is handy at remodeling or can get work done at low prices, buying up cheap houses, renovating them and then re-selling them at fair market value can lead to quite an income source. Buying property and then renting it out is another option for a steady source of money, providing the owner doesn't mind becoming a landlord and being responsible for handling any problems that may arise.


For those folks who like to try something different when it comes to investments, buying and selling such things as sports memorabilia, classic cars, paintings and coins can prove to be very lucrative. Before starting any of these ventures, it's best to do your homework first to make sure you know what you're doing. Many people have found treasures galore at yard sales and flea markets, giving them a great source of income and hours of entertainment. After all, who wouldn't want to buy a painting for one dollar and then find out it's worth thousands?


These and other investment strategies are vital to the financial security of those retired or nearing retirement age. With today's continued economic instability, making smart financial choices is more important than ever. Doing your research and speaking with experts will go far in helping people decide which investments are best for them.


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Editor, 10/30/2013