A lot of retired people live on a fixed income. When a retired person lives on a fixed income, he or she must watch expenses closely. A pensioner must also invest their existing funds wisely. Here are the five best options to invest in fixed income for 2013.
A lot of investors love bonds. There are plenty of tax free bonds that are perfect for people on a fixed income. When investing in bonds, most investors do not have to worry about market fluctuations. Of course, bond rates and risk amounts can vary depending on the company.
Of course, some people who are on fixed incomes do not have a large tax bill. For this reason, a corporate bond may be the answer. In reality, a corporate bond will pay a higher rate than a tax-free bond and the tax implications may not make a difference if the investor has a low tax liability.
The rates for certificates of deposit are not high, but they have improved. In reality, an investor who wants no risk should consider investing in a CD. Sometimes, an investor can get a decent rate on a five year certificate of deposit. Of course, a person on a fixed income must realise that the money will be tied up for a long term. In fact, most banks will charge a steep penalty for withdrawing money early.
A lot of investors do not like the stock market. With the markets, an investor can invest safely if he or she chooses the right stocks. There are plenty of dividend paying equities that would be perfect for an older person on a fixed income. Dividend paying stocks are great as an investor can make money off the dividends while also making money with a rising share price.
Finally, a smart investor on a fixed income can look into rental properties. In reality, becoming a landlord is not the dream of everyone, but it can be a great way to make money. With property, an investor will have a solid asset that makes them money on a monthly basis. Not only that, it is often easy to write off many expenses associated with owning an investment property
When on a fixed income, an investor must be careful to protect their assets. Ideally, when investing, one will make smart choices and protect their assets. In reality, there are number of excellent ways to make money investing whilst still protecting ones assets.
Author Bio: Hello readers, I am Maria Benson, a blogger working for ppi claims. I am into health and finance. You can catch me on @financeport.