Investment after retirementis growing commoner these days, but you need to be cautious before putting yourmoney into any type of asset. Even if you have a contingency fund in place, youwill not like to invest in the wrong assets at an inopportune time and watchyour money go down the drain. Here are 4 common questions that seniors need tohave about investment in the post-retirement stage.
When is a good time to make stock investments?
If you find the financial market is going through a bad patch, you might feel that the time is improper from the investment perspective. Alternately, you might feel that investing is right when the market is witnessing a revival. Neither time is bad or good if you intend to make an investment over a long period.
What should be my own investment time frame?
As a thumb rule, if you make an investment over an extended time period, you can take greater risk in your investment portfolio. This is because you have more chances of recovering from any mix-up. For people who are still a long way from their retirement, it can be a good idea to put money into anything not liquid – such as an investment property. But if you are putting your retirement funds into the investment, you have to consider whether the investment bodes well from the point of view of planning.
Why and when should you sell the investment?
If you have a clear idea about why you are investing your resources into an asset, you should also have a proper idea about when you should sell it. If you have bought a stock with the expectation of growing your income by 20% annually, you need to expect selling the stock in case you do not see your income growing as per your own expectations. In case you bought a stock as you got a dividend yield, you need to sell the stock in case there is a drop in the profit yield.
Who Am I Investing With?
It is very difficult to judge the capability and character of any individual by going through the profile description in the annual report of an investment company. But you need to be sure who you trust your hard earned money with actually. Know about the past record of the investment agent. Also find out about the turnover, dividend yield and track record of the investment agent.