It is always a good idea to save money for your retirement. Doing so from an early age can make a big difference in the amount of money you will have when you retire. The best investment options for retirement savings vary depending on your age, risk tolerance, and other factors. Bill Schantz will now mention three of the most suitable investment options if you want to grow your retirement savings.
Best Investment Options for Retirement Savings per Bill Schantz
According to Bill Schantz, annuities are often thought of as a retirement investment, and for a good reason. An annuity is an insurance contract that guarantees a stream of income payments over a fixed period of time or for the rest of your life.
An annuity can provide some peace of mind in retirement, as it offers a guaranteed income stream that is not dependent on stock market performance or other factors.
There are two main types of annuities: fixed variable. With a fixed annuity, you will receive the same income payment every month for the duration of the contract. A variable annuity, on the other hand, gives you the ability to invest your money in different sub-accounts, which may offer the potential for higher returns, but also come with more risk.
The type of annuity you choose will largely depend on your personal risk tolerance and retirement goals. If you are looking for a guaranteed income stream that is not dependent on the stock market, a fixed annuity may be a good option. However, if you are willing to take on more risk in exchange for the potential for higher returns, a variable annuity may be a better choice.
Total Return Investment Approach
The total return investment approach is a strategy that aims to generate income and capital appreciation through a diversified portfolio of investments. This type of investment strategy can be used in retirement, as it offers the potential for both growth and income.
With a total return investment approach, you seek to generate returns from both the appreciation of your investment portfolio and the income that it produces. This can be done through a variety of investments, including stocks, bonds, and real estate.
The total return investment approach can be a good option for retirees who are looking for both growth and income from their investments. This type of strategy can be tailored to your individual risk tolerance and retirement goals.
According to Bill Schantz, real estate investment trusts (REITs) are a type of investment that allows you to invest in a portfolio of properties without having to own the property outright. REITs can offer the potential for both income and capital appreciation, making them a good option for retirement investments.
REITs typically pay out high dividends, which can provide a source of income in retirement. In addition, REITs can offer the potential for capital appreciation as the value of the underlying properties increases over time. However, it is important to keep in mind that REITs are subject to market volatility and can lose value in a down market. Therefore, REITs may not be suitable for everyone.
When it comes to retirement savings, there is no one-size-fits-all solution. The best investment for you will depend on your personal circumstances, risk tolerance, and retirement goals. However, annuities, the total return investment approach, and REITs are all viable options for retirement savings. Bill Schantz recommends talking to a financial advisor to see if one of these options is right for you.