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Retirement Investing Explained

Retirement Investing

Retirement investments are often an additional source of income for retired individuals. Although most retired Americans at the age of sixty five have access to social security, sometimes the benefits are not enough to cover even daily expenses. Retirement investing is often considered the safest way to ensure that retired individuals can protect their financial future.

Retirement investing can include a variety of investment options. One of the most common forms of retirement investments in the 401K plan. Employees are able to contribute a certain percentage of their salary to the retirement plan before taxes are applied to their income. In many cases, employers will match each employee's contrition to the plan, but there is sometimes a limit to that amount.

Some companies also offer employees stock options which can be used as a retirement investment. If stocks are acquired throughout an individuals career, they may have many stocks when they retire, allowing them to sell the stocks as a form of income. Employees may also leave the stock after retirement and may sell them if the need arises.

Retirement investments may also include real estate. The purchase of rental properties for example, is often used as a real estate investment. Retirees may opt to keep the rental property as a monthly source of income, or sell the property at retirement in order to reap the benefits of the full sale price of that property.

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