What You Should Know About Pre And Post Retirement Income

         Your financial situation is as unique and important as you are. There is no denying the fact that money is something of a basic necessity. Saving some amount of the income is as important as generating it. You have to have some money saved for a rainy day or for future uses or sometimes even for some impulse buying. Expenses such as housing, everyday expenditures and even healthcare can cost a lot disrupting your savings. Every parent dreams of sending their kid off to a good college so that they can have a secure and bright future. The college tuition is ski rocketing, so if you have enough saved to help them out with half of their college tuition is an accomplishment.

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Apart from all that, you have worked hard and already dream about sipping mimosas with a partner after retirement. Maybe owning beach front property after retirement may not seem possible but there are ways to save up so you can enjoy life after retirement. If you think saving is not an option with all the expenses that you have, then here are a few ways to keep generating income without having to work.

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1. The name’s Bonds, Laddered Bonds:

         Bonds are considered to be an investment that is fairly risk-free. These can give your income the boost that it needs. Bonds are recommended because if a company is looking to expand, they usually turn to individual investors rather than the bank. The interest rate is fixed and the principal should be paid to the investor by a set date. The cherry on top is that bond-holders also receive an interest amount annually or every six month.

 Advantages:

• Bonds pay comparatively higher interest than other saving tools.
• You know how much to expect since the return of investments are fixed.
• Bonds are far safer than stocks.
• When a bond matures, its value increases. It can be worth significantly more than what you paid for.
• The best part is that even of the company liquidates, bond-holders are paid first.

2. Fixed Annuities:

         Fixed annuities are like CD’s but instead of the bank these are issued by insurance companies. The pay from interest is guaranteed to be higher than that paid for the CD’s. The best part of fixed annuities is that they provide a continued flow of the extra income. This is a great option for people with anxiety issues because the fluctuating market doesn’t effect it. You have to choice in funds you want to invest in. Then you pay a premium to the broker to control the assortment.

Fixed annuities are better and safer than variable annuities because the in variable annuities, your investment value is heavily influenced by the ups and downs in the market.

3. High Profit Saving Accounts:

         If you haven’t already, you should definitely shift to a saving account that gives high profit. What could be more awesome than generating money with the money that you already have. The money that is just sitting in your account can be used to make more money. The only way to make your savings exciting is if it starts pulling in more money.

Your earning can generate earning. How? Simple, just get the best rate you possibly can and it will add up fast. To sum it up, a low interest rate which has low fees can be more profitable and more affordable.

There are risks involved in most of these money saving or money generating techniques. If you are interested you might want to do more research on it. Weigh the pros and cons and start saving!