What Are Some Safe Investments for Retirement?


Quick Answer

One of the safest investments for retirement are Treasury bonds, which are issued by the federal government. Treasury bonds represent a debt and unless the federal government becomes bankrupt, the principal investment is safe and will be paid in full along with interest, according to Bankrate. Other government agencies and corporations may also issue bonds.

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Full Answer

The most common tip for a safer retirement nest egg is to have a diversified investment portfolio with a broad range of assets that will yield current income and provide income growth. The key is to have a mix of assets that can deliver adequate returns without subjecting the investment to large losses, according to CNN Money.

Concentrating investments on dividend stocks is less than ideal because it restricts the portfolio to a few industries. The portfolio should mirror broad stock and bond markets, and one possibility is to invest in total stock and bond market index funds.

Another retirement investment tip is to purchase an immediate annuity before retiring and invest more in annuities every few years. It should be noted, however, that there is no such thing as a perfect formula or risk-free options when it comes to investing for retirement, according to Kiplinger.

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