There’s a lot of advice and talk about investing for retirement, but what about investing after retirement? Many might think that retirement is the time you start withdrawing money, satisfied with the wealth you’ve created thus far. I’m here to tell you that that’s not the case. Just because someone is retired doesn’t mean that there isn’t wealth to create and build.
Why Retirees Invest
One of the most significant reasons that seniors invest well into retirement is simple: to build more wealth to leave behind. Not many people like to think about death, but it’s a fact that we’ll all go sometime; why not leave as much money for your loved ones as possible?
By investing during retirement, you can continue building your wealth for the rest of your life, and with the life expectancy on the rise, that could be quite a while from now. Some might choose to eat away at their savings, but letting your savings account continue to work for you might be the better option.
Do retirees invest differently?
Seniors investing typically aren’t interested in long-term, low-paying investments. These are the investments that people use when saving for retirement. Once someone retires, however, time is of the essence, and the quicker they can build their wealth, the better.
Investment for Retirees
So, where do seniors choose to invest their retirement portfolios? Everyone is different, but according to other financial planning sites like Investopedia, the best investment opportunities for seniors are the following:
Diversified Asset Allocation
It’s recommended that seniors allocate their assets to many different areas including property, currencies, commodities, and corporate debt. Although some might feel that it’s best to play it safe during retirement, seniors can actually afford to take on slightly more risk since those investment opportunities could offer the fastest return. If they instead only chose low-risk investments, they’d have to wait years to start seeing a substantial return on investment.
Other Income Streams
Although seniors expect to receive income from their superannuation and other retirement accounts, they also look for other income opportunities. This can include property sales (assuming you’ve invested in property), or annuities. If you leverage your SMSF for property investment, your income will be more tax effective than buying the property with personal accounts.
Does Previous Experience Matter?
As with any investment opportunity, having experience can greatly improve your chances of making the right decisions. Even so, many Australians seek the help of financial planner when preparing for their retirement and feel more confident because of it. Anyone could benefit from some guidance from investment advisors.
It’s Never Too Late
If you’re retired, and you’re ready to continue investing through your later years, we want to work with you. Get in touch with us to book an appointment with one of our property investment experts. We’ll answer any and all of your questions to help you get started in property investment and developing your portfolio. In the meantime, make sure to subscribe to our blog and follow Adpen on social media.