The Best Retirement Investments Offering Fixed High Incomes
Reporter
March 20, 2025 | 02:50 pm
TEMPO.CO, Jakarta - Securing financial stability during golden years requires careful planning and smart investment choices. The best retirement investments are not just about preserving wealth, they should also generate a reliable income stream.
Making the right investment decisions can make a difference between a comfortable retirement and financial uncertainty. In this article, we’ll explore the best retirement funds for retirees to make your money work for you long after leaving the workforce.
7 Best Retirement Investments
With valuable insights from the US News and Investopedia, here is the list of low-risk investments for retirees.
1. Certificates of Deposit
Certificates of deposit are generally safe investment options for retirees, presenting a safeguard from the Federal Deposit Insurance Corp or National Credit Union Administration. This income stream usually has a fixed term of a few months to several years, with potential profit coming at 2% or less per account. However, these saving accounts maintain minimal risk against market volatility, especially during war.
2. Immediate Fixed Annuities
Similar to certificates of deposit, an immediate fixed annuity offers a predictable income stream, though presented with higher interest rates. These investment options come with contract terms spanning anywhere from three to ten years, offering investors an immediate payout upon purchase. But, there’s always a chance retirees might not outlive the payment periods, posing a bit of a hindrance for people above 65.
3. Municipal Bonds
When it comes to the best retirement portfolio for 65-year-olds, municipal bonds might sit at the top rank. Buying a bond, or debt, issued by state or local governments could guarantee residents a tax-free interest income. This is especially a lucrative investment instrument for people under the high-income tax brackets.
4. High-Yield Saving Accounts
High-yield savings accounts are one of the best retirement funds for retirees who want low-risk growth. According to the US News, an account of US$10,000 is able to roll out an interest payment of 4% over a year. In today’s dynamic investment sector, online banks commonly take this pathway to lure savers for their best rates.
5. Dividend-Paying Stocks
Dividend-paying stocks are considerably one of the best retirement investments, especially when choosing large, well-established corporations. These stocks signify your stake in the company, earning you a spot among its valued shareholders. However, retirees should always keep an eye on market trends to safeguard their investments from potential drops in stock prices.
6. Income Producing-Property
Landlording can be incredibly rewarding, especially for retirees, thanks to the steady stream of guaranteed monthly income. To minimize the risk of dealing with unreliable tenants, consider teaming up with home-sharing platforms like Airbnb or VRBO. Just be sure to factor in operational costs to keep your investment running smoothly and stress-free.
7. Treasury Inflation-Protected Securities
Also known as TIPS, Treasury inflation-protected securities are special government bonds with adjustable values according to the current consumer price index. As the name suggests, this investment instrument has the potential to have higher interest payments when inflation occurs.
Investing wisely during retirement is the key to securing a stable and comfortable future. By taking a thoughtful approach to one of these best retirement investments, you can ensure that your hard-earned savings continue to work for you, providing peace of mind and the freedom to enjoy life to the fullest. For soon-to-be retirees, check also the best countries to retire here.
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