Retirement income is one of those things that can make a difference in the lifestyle you will be able to afford after you turn 65 years old. Most retiree investment portfolios have a mixture of stocks, bonds and cash.
The right asset allocation strategy will lead to plenty of steady income throughout retirement. It is best to stick to tried and true funds, and remember that there is no perfect investment.
Although you may see advertisements that state that they have the best funds for the everyday investors beware. Brokers and asset managers are paid on commission and they will want to get you to sign up with the one that will pay them the highest fees.
It is still important to do your own research and try to learn how to study the markets unless you have a trusted advisor. Many are having to delay retirement and have decided to continue working. If you find yourself in this similar situation then you will want to make the most of the extra earnings by finding a good mutual fund to invest in.
Top Mutual Funds for Baby Boomers
First you want to look at the different fund categories which can fall under: long-term, short-term, small growth, large growth, large value, Mid-Cap value, Mid-Cap growth, etc.
The ones that will give you the most options for growth will be in the T.Rowe Price, Vanguard and Fidelity. The reason is that it will boost your returns by giving exposure to foreign stocks.
Future of social security
Reports show that there will be future social security cuts coming down the pike. You can expect new minimum and old age benefits for low-income earnings and with baby boomers living longer they more than likely will out live their savings.
Supplemental retirement accounts which will require seniors to set aside earnings to receive higher income payments later down the road. Raising the retirement age to 67 years of age or 70 could be changed to meet life expectancy rates.
Employees who work in private companies or government jobs will participate in contributing payroll earnings into social security that depending on how much the workers earned could see higher taxes.
Is there such thing as guaranteed income?
The lack of guaranteed income has retirees looking at annuities which is a financial product sold by an insurance company. How they work is that you put aside money to purchase life insurance that will pay income once the policy reaches maturity.
What makes this option so popular is that any earnings that are accrued is tax free which is good news for those high net worth individuals who have no limit on the amount of money that can be put into their annuity.
Disclaimer: This is for informational purposes only and is not meant to give investment advice, it is recommended that you consult a investment broker before you invest in any mutual funds.