Investment Income for Seniors

 

Retirement means you retire from work, not from life. Even if you are not working, you can still buy a new home, afford a new car or plan for that trip abroad that you have always wanted to take. With a steady flow of earnings into your account, you can sit back and relax without the slightest worry about where the money’s going to come from. With Social Security benefits providing support to an ever-increasing number of retirees and senior people, you should think of personal savings as your source of income during your retirement days. These days, investment income is emerging as the major alternative to Social Security in the US.

Investment Portfolio

Building a successful investment portfolio is the key to a steady flow of income every month. But, you need to know a few things before you make the move. Remember, that your portfolio may not be the same as another investor’s, because you have your own specific requirements and purposes. So, don’t follow the market trends blindly.

Study your options well. Consider carefully how much risk you are willing to take. An important thing about your investment income is your individual tax rate. Note that the individual tax rate on net investment income depends on whether it is interest income, dividend income or capital gains.

Investment Options: Stocks, Bonds, Mutual Funds

Your investment income can come from various investment assets like bonds, stocks, mutual funds, loans and other investments. Stocks are investments in individual businesses. Bonds are investments in debt that can earn interest. Mutual funds are actually pools of money coming in from a number of investors that are invested by professionals or according to indices.