The best investments for your retirement ~ Meaning Articles

The best investments for your retirement

To improve the purchasing power during retirement, we must choose a suitable financial product that helps raise incomes, such as investment funds or insurance savings
Retirees with lower pensions have to be careful with spending their savings because there will be only will the public pension to live the rest of their lives. If you do not have a private plan to supplement their monthly income, they have no choice to design an investment plan to retire with the most healthy current account. This article describes what are the best investments for retirement, a number of very useful proposals that report every year an average yield of around 3%, but due to the current economic climate, this sometimes involves taking increased risks.


How to have more savings in retirement?

The maximum and minimum pension for 2016 will grow by 0.25%, as recorded in the State Budget. As a result of this slight variation, retirees will from January to a maximum pension of 2,567 euros and a minimum of 636 euros . Many of those affected, especially the members of the lower section will have no choice but to seek an alternative to increase these salaries. The possible options will come mainly from investments that give all their savings and can add an average return of between 3% and 10%, depending on the model selected.

Despite their desire to monetize its assets, the proposals that have older are significantly limited as a result of the decision of the European issuing bank to lower borrowing costs . Deposits, bank notes and debt in general no longer be instruments to shelter their savings, as was the case until now. From the new economic scenario, there will be no solution to take more risks to get a minimum return that meets your desires.

Three proposals to invest for retirement savings

The financial products chosen for retirement are not traditional, but must be adapted to these special characteristics. Fortunately, there are products suitable for retirees. But hey !, because they can not expect spectacular returns and sometimes the risks are higher than usual.

1. Investment funds for retirement
Once discarded because of low profitability classic fixed income products (deposits, notes, bonds, etc.), investment funds can be an alternative. To avoid any kind of risk, the most committed will shun financial assets, opting for flexible models that can adapt to all market situations . In this sense, balanced funds are a good idea to combine fixed equity through different designs made ​​depending on the customer profile.

2. Insurance Savings
The insurance savings are an alternative financial product to deposits and promissory notes, characterized by always guarantee the capital invested. They allow to obtain a small profit every year (around 2%), but without taking any kind of risk . It is possible to hire more aggressive models that increase their performance through a wide range that offer both banks and insurers.

There are many forms of these products: life insurance savings, retirement life insurance, unit linked, Insured Pension Plans (PPA), Individual Systematic Savings Plans (PIAS) and pension.

3. Pension Plan
Pension plans are an instrument of long-term savings, whose main objective is to supplement the retirement income provided by Social Security. The pension plans are not just for retirement, but when other contingencies are developed (disability , dependence, death) or liquidity exceptional circumstances (serious illness, long-term unemployment and eviction) .

Flexibility is one of the characteristics of this proposal, as it provides an income based on the contributions made by the owners. However, the main problem is that it is necessary to formalize it in advance so that its effects, when you reach retirement, are most favorable.

Reverse mortgages: a help, but also a danger

An atypical to improve the standard of living from retirement product are reverse mortgages. But this model also carries an important trap conditions. In principle, it helps to increase the monthly income of people who prefer it. Not surprisingly, serves to cases where government revenues are not enough to cover expenses. This is a loan for which the owner gets fixed every month (depending on the valuation of the floor) an amount , with a deadline agreed, which generally is capped at around 15 or 20 years.
But careful if you hire this product, as it is not an annuity, much less. Upon termination of the term, not only will no longer receive monthly fees, but they also have to repay the borrowed money . Furthermore, in the case of not having sufficient funds to settle the operation, not be forced to sell the property.
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