Three Ways to Invest for Retirement

Your Social Security benefits will replace only part of your pre-retirement earnings. Read about common investment options for generating additional retirement income.

1. Income Annuities

Income annuities can provide a reliable stream of income during retirement. They work by converting a portion of your savings into a guaranteed income for life. Challenges of annuities include potential inflation risk and limited flexibility in accessing your funds.

2. Diversified Bond Portfolio

A diversified bond portfolio can provide a stable source of income through regular interest payments. Bonds are considered less risky than stocks and can help balance out the volatility in your investment portfolio. Challenges of bonds include the potential for interest rate risk and the need for ongoing management.

3. Total Return Investment Approach

A total return investment approach focuses on generating both income and capital appreciation. This approach involves investing in a mix of stocks, bonds, and other assets to achieve your retirement goals. Challenges of a total return approach include market volatility and the need for regular portfolio rebalancing.

When it comes to investing for retirement, it's important to find the right strategy that aligns with your financial goals and risk tolerance. Consider consulting with a financial advisor to help guide you through the investment process and create a personalized retirement plan.