Your investment objectives evolve over time. The closer you get to retirement, the more your financial priorities shift. A senior is more likely to invest in safer products and plans with adequate returns to cover ongoing costs. However, there are various investment opportunities available to seniors today. There are public and commercial programmes that older people can use to make respectable returns.
The following investments are available to senior citizens who want to maximise their income.
Guaranteed Investment Certificates (GICs) – These are low-risk investments that offer a guaranteed return. They are typically offered by banks and credit unions, and can have a maturity of anywhere from 30 days to 5 years.
Government Bonds – These are debt securities issued by the government and offer a fixed rate of return. They are considered to be low-risk investments, and can be a good option for senior citizens looking for steady income.
Annuities – These are insurance products that provide a guaranteed stream of income for a specified period of time, or for the lifetime of the annuitant. They can be a good option for senior citizens looking for a steady income stream.
Dividend-paying stocks – These are stocks that pay out a portion of their earnings to shareholders in the form of dividends. They can be a good option for senior citizens looking for a combination of capital growth and income.
Mutual funds – These are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. They can be a good option for senior citizens looking for a diversified investment portfolio, but the risk and returns depends on the type of mutual funds you invest in.