Mutual funds are professionally managed investment vehicles that pool money from many investors and invest it in securities such as stocks, bonds, money markets. The investments in the mutual fund are managed by an investment company who assign a portfolio manager with the responsibility of overseeing the day-to-day operations of the fund.
Income annuities can provide a steady, secure source of lifelong retirement income. An annuity can play a very valuable role in helping cover basic living expenses retirees face. By using annuity income to take care of specific living costs, retirees gain the flexibility to use other retirement income and savings for discretionary, unanticipated, or long-term expenses.
Because it supports the investor’s income needs, a distribution portfolio differs significantly from an accumulation portfolio. In a distribution portfolio, annual income becomes more important than growth of capital.
Identity theft is a serious crime, and according to the Federal Trade Commission (FTC), more than 20 percent of identity theft victims are senior citizens. Reduce your chances of becoming a victim by educating yourself about identity theft laws, prevention strategies and recent scams.
Individual Retirement Accounts (IRAs) are popular and effective as retirement income vehicles, allowing you to save for retirement throughout your working years. But some people may find that they don’t need IRA withdrawals for living expenses, and prefer to instead pass the IRA asset on to beneficiaries.
Inflation lowers the purchasing power of money. Even a modest level of inflation can take a significant toll on your retirement purchasing power and lifestyle over time. That’s why it’s important to take inflation into account when developing your retirement income strategy.
Understand your Pension Income options. If your employer provides a traditional pension or defined benefit plan, you will need to decide how to receive your pension benefits when you retire.