4 Rules That Will Bombproof Your Retirement

Do invest your money

If you are going to need your money in the short term you should keep it in cash. If you are planning to fund your kid’s college education a year from now or you are looking to move out of your rented place and make the down payment of your new home in the near future, keep thosefunds in a savings account or in a money market fund. Stock markets are not the place for you.

If you will be needing money over the next five years you should consider secure, income-generating investments, such as bonds, certificates of deposits (CDs), and Treasuries. Treasury notes and bills are the safest, while CDs are very safe too provided they are insured by the FDIC. (Most are.)

Corporate bonds are relatively risky compared to bank deposits but will provide a better yield. If you are going to invest less than $30,000, a prudent way could be to own a bond mutual fund as an individual investor. Carefully consider your risk-reward profile while choosing between these investment options.

If you are not going to need your money for a period of at least five or more years, invest in the stock market. From 1926 to 2007 the average annual return on investments in large-cap stocks has been 10.4%. You cannot expect to earn anywhere near this kind of return from Treasury bills, government bonds or high quality corporate bonds. And you’ll need a higher return to stave off the effects of inflation on your cash.

1 / 4
Next ❯

Best Deal for Social Security: Retire at 62, 67 or 70?

What's the best age to start taking Social Security? This is a very good question!You have the option to take retirement benefits as early as age 62. However, s0-called "full"

Bad Advice Could Cost You More Than $5,000 a Year in Lost Retirement Benefits: Report

As many as 9,224 widows and widowers aged 70 and up have been underpaid beneficiary benefits for years — at a cost to them of nearly $132 million in lost

10 Ways to Live Frugally Without Looking Cheap

There is no way around it, we live in a status-driven society. Whether that is owning the newest Gucci purse or buying a shiny new car, people judge other people

Opinion: Never Let a Robot Choose Your Investments

We live in a fast-paced world. This motivates many people to automate menial tasks, including investing. That may work for a while, which gives you a false sense of security.

3 Dangerous Things to Avoid If You Inherit Money

Are you due to gain an inheritance anytime soon? Maybe you should not start celebrating or counting that inheritance money before it is in your hands. While gaining an inheritance

Nasty Diseases You Can Get from Your Pets, and How to Prevent Them

We all love to give our pets lots of kisses and cuddles, but what if you end up with a nasty parasite or viral infection? Animals are unfortunately prone to

4 Red Flag Warnings of a Bad Stock Investment

When looking to buy a company that you want to add to your portfolio, there are several things to look for. There are also several things to beware. I believe

What Does the Executor of a Will Do?

The executor is the designated representative who is supposed to ensure that the estate is properly settled and that the assets are distributed according to the wishes of the deceased.

4 Killer Diseases That Can Be Treated with Cayenne Pepper

Did you know that there is one natural remedy that can protect against every leading cause of death in Western countries? It’s time for a new go-to remedy to join

3 Simple Money-Making Rules for Stock Investors

There are lots of different ways to invest and so many companies to choose from. It can become overwhelming, especially for a new investor.  If you are new to investing

4 Reasons to Reconsider Retiring to Florida

So, when one thinks of a place to live out retirement, what state comes to mind? Florida. The state of Florida is the common answer to living out retirement if

35 Benefits of Active Mindfulness

The stress of trying to have it all can leave us feeling like we have nothing at all. If we just take a step back to smell the roses, our