Best Investments For Seniors
Safe Investments For Seniors and Baby Boomers
After working their entire lives to build up a nest egg, a lot of seniors are terrified to invest their hard-earned money. After raising a family, putting children through school, and paying off their house, the last thing they want to do is risk what’s left of their personal fortunes on bad investments. A large number of baby boomers are seeking the best investments for seniors and baby boomers that are safe and yield a profit.
Fortunately, there are still some safe investments for seniors and baby boomers. There are numerous sources of income that the vast majority of seniors do not know about. These can give them a predictable amount of cash flow every month, provide monies to be used to meet life’s daily expenses, pay for a vacation, or help out their siblings and grandchildren.
Types Of Investments for Seniors
- Certificates Of Deposits – Certificates of deposits, more commonly known as CDs, are one of the most risk free investments a senior can make. Bank CDs are fully insured by the Federal Deposit Insurance Corporation (FDIC). This means they are protected against the loss of the principal and interest, even if the financial institution goes belly up and closes. The rates of CDs fluctuate with the rates of interest, but baby boomers and other investors can get the most bang for their buck by shopping around and comparing prices. One way of investing in them is to build a ladder of CDs. This is done by purchasing a separate group of one, two, three, four, and five year CDs. That way, the ladder will provide a constant stream of cash, and eventually at the end of their terms, they will all renew at the highest five year rate.
- Treasury Securities – Seniors also have the option to invest their money in T-Bills, Treasury Bonds, and Savings Bonds. These are also known as Treasury Securities. They are also insured by the United States government, making them one of the safest investments around. If they are afraid of inflation, seniors can invest in Treasury Inflation Protected Securities (TIPS). These pay a set rate, plus the rate of inflation, and give the investor an immense amount of purchasing power and protection. Treasury securities can be bought from the government directly, or through any financial institution such as banks and credit unions.
- GNMA Bonds – Government National Mortgage Association Bonds are mortgage backed securities. Unlike most other mortgage related investments, these are fully backed by the U.S government and their credit. This makes GNMA bonds extremely guarded investments for baby boomers, who require a steady and healthy flow of money out of their investments. Because they are bonds, the cost of a GNMA mutual fund moves in relation to interest rates. When they climb, the share price will go down. When interest rates decline, the value of the GNMA bonds will rise. For seniors who plan to keep the money invested long term to earn interest, this is not a concern. For those who plan on dipping into their original investment amount, they have a reason to worry. The interest rates on these funds are usually a little higher than treasury bonds or CDs. This makes them a much better choice for the long term investor.
- Gold Investments – Gold is the only type of currency that has never failed in the 5000 years that humans have been using it. It is estimated that there is only enough gold in the world, for every living person to own 1/3 of an ounce. This makes it an extraordinarily desired commodity. In times of crisis, gold is the safest investment. It also has the greatest potential to increase wealth. Gold is a totally private, anonymous, and portable investment.
- Silver Investments – The second most important of the precious metals is silver. Next to oil, silver is the world’s most useful commodity, having thousands of industrial uses. It is even rarer than gold. It’s estimated there is only enough silver for every living person to have only 1/14th of an ounce. This makes it perhaps the most sought after metal on the planet. It is known as the ‘miracle metal’ due to its countless uses. In the last 30 years, more silver has been used, than mined. Inventories are at an all-time low.
It is obvious that gold and silver will always be wise investments, no matter what happens. Seniors today have a lot of options when it comes to retiring worry free. If they play their cards right and invest in the best investments for seniors, they won’t have any worries financially. They can enjoy the retirement they have worked so hard to earn.
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