There are lots of ways to save for the future. From a simple savings account to a retirement fund, there are benefits and disadvantages for every plan. The best scenario is a diversified plan that covers a wide range of savings options.
Investments are a savings strategy that can grow income that augments your retirement income and helps pay for out of pocket medical expenses. As we age, the bigger issues become health related. Having adequate coverage for a wide range of possibilities is valuable. We never know what sort of medical and other expenses we may have but some include:
- Long-term hospital stays
- Medication and ancillary equipment needs
- Out of home placement
- Estate management
- And more
Making investments can help grow income passively while you earn income throughout your career. Once you retire, your sources of income work in conjunction with one another to preserve your standard of living.
If you have medical coverage in place after retirement, there may still be out of pocket expenses. Leveraging investment income can help offset those costs and may have fewer penalties than accessing other sources of income. Your financial planner can help you evaluate the best investment plan for your budget.
If you start investing in your younger years, you have a great chance of growing your income with simple and consistent investments. If you are starting later, no worries you can still grow your income and use strategies to make up for lost time. Either way, investing will help you generate income that supports your needs later in life.
Here are some simple investment ideas for your consideration:
- Invest in the stock market
- Invest in commercial property
- Invest in tax-deferred plans
- Invest in insurance products
Some investments can be liquidated faster than others when you need income. Others have penalties depending on when and how much income you collect. Your financial planner can help you diversify your investments so you have an assortment of options to grow your money and collect it when you need it.
Investments are one of many tools you can use to secure your income for the future and plan for your end-of-life needs. Making small, simple investments over time will render big and important rewards when you need them most. These investments become assets that add to your estate and become part of your legacy from a life well lived.