Retirement can be an exciting time, full of new possibilities and dreams. But once you say goodbye to your full-time job, you may find yourself with a lot of extra money in your pocket from the retirement savings accounts you have been adding into over the years. With this newfound income comes the decision of how to spend it.
Here are 10 tips and ideas on where to invest your retirement income:
- Consider a Second Home: Investing in a second home can be an excellent way to make use of your retirement income. Whether you plan on living there part-time or renting it out, owning property is a great way to increase your net worth.
- Go on a Vacation: Taking a vacation is the perfect way to enjoy your retirement income, and it can be surprisingly affordable when you plan ahead. Look for deals on all-inclusive packages or use rewards points from airlines and hotels to get a great deal.
- Invest in Stocks and Bonds: Investing in stocks and bonds is a wise way to make use of retirement income. There are many online investment firms that specialize in managing retirement accounts, so you can work with an expert to guide your portfolio investments.
- Start a Business: If you’ve always dreamed of starting your own business, now might be the perfect time to do it. Use your retirement funds as an initial capital investment and use the money to get your business off the ground.
- Invest in Your Grandchildren: Investing in your grandchildren’s future is a great way to invest your retirement income. Set up a college fund or look into tax-advantaged ways of investing that will benefit them in the long run.
- Take up New Hobbies: Retirement is a great time to take up new hobbies. Whether it’s painting, woodworking, or stamp collecting, use your retirement income to invest in the materials and equipment you need to get started.
- Buy Artwork: Investing in artwork is another way to make use of your retirement income. Consider original works from talented local artists you can enjoy in your home and will appreciate in value over time.
- Take Classes: Use your retirement income to invest in yourself by taking classes to learn new skills or brush up on old ones. You’ll enjoy the mental stimulation, make new friends, and have something to show for it at the end of the class.
- Save for a Rainy Day: It’s important to have money set aside for unexpected expenses or emergencies. Invest your retirement income in an interest-bearing savings account so you can be prepared for anything life throws your way.
- Donate to Charities: Donating to charities is another great way to use your retirement income. Look into local organizations that need help and find ways to make a real difference in your community.
Now that you know some tips and ideas for investing your retirement income, it’s time to start planning. Research different investments and consult with a financial advisor to make sure you’re getting the most out of your money.
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Opinions expressed in the attached article are those of the author and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice. Material provided by Redfern Media, an independent third party. Raymond James is not affiliated with Redfern Media.