One of the ideal ways to invest after retirement would be to create a diversified investment portfolio where excess retirement funds is invested in all level of equities from different industries, short-term and long-term bonds, mutual funds, real estate investment trusts and various commodities. A diversified portfolio is a good way to keep the investments safe while allowing it to grow slowly but surely, according to U.S. News and World Report.
The following is an example of a diversified investment portfolio for a 72-year old retiree, as recommended by U.S. News and World Report.
- Fixed income from government and corporate - 40 to 55 percent
- U.S. equities - 15 to 30 percent
- Fixed income from international bonds - 5 to 15 percent
- International equities - 5 to 10 percent
- Real estate investment trust funds - 3 to 8 percent
- Various commodities - 2 to 4 percent
One good way to determine how much of the retirement fund to invest would be to match the retiree's fixed expenses with his fixed income, as recommended by Kiplinger. The retiree's fixed income comes from Social Security, pension and other immediate annuities. Once the expenses and incomes are matched, the retiree can then plan his investment portfolio with the remaining funds. The earnings from the investments should be allotted for non-essential expenses such as travel and entertainment, which can be put off during times of stock market downturns.