You need to decide on building up your retirement money. If you are doing government service then you will have a pension fund. There are many private organizations as well that provide their employees with a pension fund. You need to invest your retirement money intelligently so that you get a decent profit from it. Here are three ways to invest your retirement money.
If you leave your money in a bank, there is zero risk involved but you will get a return of only 1% to 2%. Annuity can provide you certainty, but the income becomes low. There are various funds you can invest in that will give you at least 3% return every year. But these funds are a little riskier than the banks as you need to tolerate the stock market fluctuations.
Various types of funds
You can invest your money in government bonds or corporate bonds. These are the least risky ways of investing your money. You will get an income of 2% to 3% every year. It is advisable not to buy one fund. You should invest in multiple funds to lower the risk.
You can invest in properties to get high returns. In such case you need to look into the trends in the property market so that you know when to invest and later sell the property to make profit. Gary Hathley, owner and operator of RR Remodeling Pros says he uses his money to invest in long term rental properties. Since he does all the bathroom remodeling in Round Rock on his own, he saves a lot of money.
Whichever option you choose you should weigh your risks. You should understand your financial condition and assess how much risk you may take before deciding how to invest your retirement money.