The Biggest Mistake – Putting Retirement Savings In Unsuitable Investments

One of the big investment mistakes made by many Americans who approach retirement is to put your retirement savings in unsuitable investments. Retirement is the stage of life when the accumulation of wealth has passed. It is a time when their accumulated wealth that should lead to immortality – until three or four decades. Some of you are tired of worrying about the financial health of the companies in which you own shares, or what will happen tomorrow by the market value of its investments. Many of you just want to be assured of a secure and predictable income for the rest of their retirement.

For those of you who have no company pension, but still want a guaranteed income that you can not survive, to investigate the purchase of an immediate annuity. This means entering into a contract with an insurance exchange in which you or some of their retirement savings to guarantee that you will receive a monthly income for life. Retirees can choose from several options to ensure that the last survivor is financially secure.

If your preference is to give up guaranteed monthly income and finance his lifestyle since his return from retirement savings, make sure you choose investments that fit your ability to afford the risk. Sometimes, the general nature of the investment may be appropriate for retirement, but the underlying assets are not. For example, a variable annuity can guarantee that if you die your heirs will pay the highest value during the life of the investment or a guaranteed minimum return, regardless of the underlying assets. These guarantees are great for the beneficiaries, but do little for you. Always ask about the underlying assets and the guarantees behind the features and benefits.

Another important consideration is the ability of investments to meet their purchasing power against inflation. While guaranteed fixed rates are easy to understand and always give you a nominal, unless you have the opportunity to participate in overall economic growth, you may be losing ground as inflation is based on purchasing power. There is a way to gain economic growth by linking their investments to market indexes of securities, but without taking the risk of market losses.

As they age, so does the likelihood of a medical emergency. The alarming progress of the costs of health care is not likely to be detained in the face of 76 million baby boomers move into a higher state. Four million baby boomers will reach one-year retirement age for each of the next eighteen years. This bubble population will increase pressure on medical services and health, resulting in higher prices and greater scarcity. This increase in price uncertainty and the need for health care requires that your retirement savings must provide some liquidity to cope with unforeseen events.

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