Tips for making safe investments during this pandemic

Retirement shouldn’t mean the end of earnings.  With an understanding of the financial markets and solid investment processes in place, you can replace your employment income with investment income.  However, you need to remember that investments can be risky. 

This current pandemic has changed the financial landscape even further.  While the pandemic spelled doom on the financial markets initially, investors gradually seem to have now identified opportunities. 

Here are tips for safe investing:
 

1. Work with a Professional:  This is the first thing that you need to note.  You should always work with a professional.  If you think that you can do it on your own and even if you have past experience, having a professional by your side adds significant value.  These professionals are up-to-date with policies, procedures and opportunities.  There’s no excuse to go at investing on your own, because you may end up losing money.  Whether you live in a senior apartment in Ankeny, IA or independent senior apartments near Kansas City, KS; you can easily find a reliable professional near you.  Search them up on Google and see what kind of reviews that their past clients left them.
2. Real Estate Based Partnerships:  Investing in real estate is always a good idea.  However, not everyone may have the funds or the confidence to invest alone.  For such people, real estate based partnerships work wonders.  You could have as few as 2 partners and as many as 20-30 partners, who join with you in buying an investment property.  The property is most likely rented out and then sold after a few years.  As you may have imagined, the return on investment is distributed among the partners.  This partnership can be a part of a larger symposium or you could just get together with your golf buddies to invest.  However, you need to do your research before investing in a property.  The property’s location, lot size, floor area, marketability, rental potential, proximity to offices and colleges, etc. can have a bearing on the returns you make from your property.  Let’s say if you live in a 55+ apartments in Des Moines, IA; you should try to identify properties that are within drivable distance.  This way, you can always keep a check on it.  As about the money required for investing, you can either use your savings or avail of the many investment/loan products available for retirees. 
3. Diversify:  Don’t put all your eggs in the same basket.  Spread your money across balanced mutual funds, bonds, ETF, and stock.  Some of these investment vehicles offer stability with low returns while some others offer high returns with volatility.  By diversifying your portfolio, you’ll increase your chances of generating high returns and reduce your risk.
4. Corporate Bonds: If stocks are too risky for you, you can consider investing in corporate bonds.  While these are riskier than government bonds, they are safer than the stock market.  You need to ensure that the bonds you choose offer high liquidity and have diverse exposure for you to get a steady income stream.

The aforementioned investment advice is literally like the tip of the iceberg.  This will get you started, but it is never a bad idea to have an extensive discussion with a financial advisor, and you have done your due diligence.