Types Of Investments Seniors Should Consider For Income Investing
Income investing is an art of putting collectively a collection of assets such as real estate, mutual funds, bonds and stocks that generate the highest possible annually at a low risk. Typically, most of the income that come from a collection of these assets is paid out to you and the investor so you can use it in your everyday life to take vacations, give to your loved ones or charity, cover your living expenses, pay off your mortgage, buy clothes, and do whatever you want to with the money. As a senior citizen, you are probably living in a fixed income, reduced income, and it forces you to limit your spending. The way to break from this kind of slavery is to try income investing so that you can get money to spend on your everyday life. Here are some types of investments you should consider such as AARP medicare advantage plans 2019 listed on www.medicareadvantageplans2019.org/aarp-medicare-advantage-plans-for-2019/.
- Real estate
Real estate is a great type of income investment for seniors. You can buy rental properties of your own or buy shares from an established real estate organization. Real estate is a great choice for seniors because it protects an investor from inflation. The prices in real estate naturally increase as the inflation increases. Many income investment portfolios usually have real estate component as a very heavy component because its tangible nature allows those who live on an income investing portfolio to drive actually drive by their properties and see that the property still exists. This reassures them that even if the business doesn’t do well, and the market falls significantly, they will still have the property. This can psychologically give you peace of mind to still have the confidence and even stick to your financial plan even when things are tough.
Bonds are also a great income investing option seniors should consider. Bonds offer you a wide range of choices. You can own savings bonds, municipal bonds, agency bonds, government bonds, and so on. Whichever type of bond you buy, the fact is that your personal taxable equivalent will still yield.
- Dividend paying stocks
Dividend paying stocks includes both preferred stocks and common stocks. When you invest in these companies, they will mail checks to you for a part of the profit provided you are a shareholder and the amount you will receive depends on the number of shares you own. Just be sure to choose a company that has safe dividend payouts ratios. This will allow you to earn part of the profit and still reinvest a certain percentage.