7 high return, low risk investments for retirees

7 high return, low risk investments for retirees

Investments are usually coupled with a high amount of risk if it yields high returns. So, it is a major concern to identify some investing schemes that gives high returns with minimum risks involved. As financial concern is the major issue for our senior citizens due to lack of any regular income source hence, they cannot afford to take high risks in investing large amount of their corpus. Below provided are some investment schemes for the retirees that gives good return and involves minimum possible risks. Invest in your health and plan for 2020 with a supplement plan at https://www.medisupps.com/medicare-supplement-plans-2020/

Savings Account

Savings account is known for its safety and modest return values. It is usually government insured to a specific limit and even if there occurs any financial institution failure, there is a high chance of money compensation provided by the government itself.

 

Municipal Bonds

These are usually the depth securities issued by the native country or the government. They involve the senior citizens investing into a tax free interest rate. In addition to that, it also provides for a good return value especially if the maturity ter m is high.

 

Annuities

It is usually the contract between the insurance company and the senior citizen. They usually have a guaranteed return value at a fixed rate but might also involve a risk of market decline.

Savings Bond

Investing in savings bond is a great choice to opt for that will be eventually helpful to protect the senior citizen against any inflation related issues.

Bank Certificates of Deposits (CDs)

They are loss proof but care should be taken not to take out the saving before the agreed bond duration which might ultimately result into a low yield of interest return. High yield CD accounts are there which usually pay higher interest rates than other CDs but the perks are limited only for a larger deposit value.

Corporate Bonds

Investing into some corporate bonds can result into higher yields but the limitation lies on generation of interest rate risk and default risks for the senior citizens

Utility Stocks           

Investment in utility stocks are generally preferable because of its relatively higher stability in price and usually pays a little more above the treasury securities. But the limitations of utility stocks lies in their higher market risk that are a subject to taxation but the pros also cannot be ignored in terms of its stable prices and its involvement in good economic expansion sectors.