Baby boomers like you who are interested in investing need to take a slightly different approach than the average investor. You’ve come a long way in life and you’re probably retired or approaching your retirement date in a few years. As such, you’ll want to make smart investments that have low risks and reliable returns. Consider some investing strategies that will maximize your potential to generate a profit, and make your money work for you in your later years.
- Buy Certificates of Deposit
Certificates of Deposit, or CD’s, are some of the most dependable investments you can make. Under this strategy, you give your money to a bank under insurance and guaranteed interest returns. The money is held by the bank for a set period, during which it gains interest. When that period is over, you can withdraw your money plus any accrued interest. These investments take time to bear fruit, but they offer safe returns and the ability to roll over into new investments.
- Real Estate Investment
Boomer investors looking for a more exciting venture should consider investing in real estate. This is a great way to diversify your investments and reap other benefits at the same time. If you choose to rent out a property that you own, you will have a stable source of income and a project to occupy your time. There is also the option of flipping properties for immediate profit. Whether you’re considering a move, looking for a vacation home, or seeking properties that can generate income, real estate investment is a great way to use your money.
- Roth IRA
Many boomers have been investing for years, using money put away in a 401k retirement account. After retirement, one of the best things you can do is move your money into a Roth IRA. You’ll have to pay income taxes when you transfer your accounts, but the long term benefits outweigh this one-time hit. You’ll be able to make buy stocks and bonds inside your IRA, generating tax-free income for years into the future. Investing through a Roth IRA is one of the best boomer strategies of all.
- Purchase Wholesale Goods
If you’ve always had an eye for business, you way want to consider wholesaling as an option. Purchasing goods in bulk from a wholesaler and reselling them closer to retail price is a great way to generate fast returns and make large profits. This, of course, is not the safest way to invest your money. However, it can have great results. If you buy smart and utilize online resources to the fullest, you’ll be able turn hundreds of dollars into thousands very quickly.
- Invest in the Treasury
Boomers looking for the safest possible investments should look no further than the US Treasury. Even the Bare Foot Investor would agree–these investments are the standard in safe returns. The government has never defaulted on a Treasury bond, making these investments ideal for boomers. When your goal is to preserve your finances in the long term, rather than generate income in the short term, Treasury bonds are the way to go.