Types Of Investment Risks Elderly Individuals Must Be Aware Of

Types Of Investment Risks Elderly Individuals Must Be Aware Of

For anyone who is 65 years or older, having an investment is the surest way to attain financial freedom. Whether you have just retired and you are planning to invest your savings, or you have been in retirement for a while and you now want to venture into business, it is important that you understand the most common types of investment risks. The moment you decide to invest, you should know that you become exposed to various types of risks. Learning how these risks can affect your returns is important. Some of these investment risks include:

  1. Longevity risk

Longevity risk is the risk of you outliving your savings. Longevity risk is relevant particularly for individuals who are about to retire or those who are retired. You can never tell how long you will live after you are retired. This also means that you cannot be certain how much money will be enough to take you through the rest of your life. It is therefore very important to continue saving and investing even during your old age.

  • Credit risk

This is the risk that a certain company or government entity that issues the bond might run into deep financial difficulties and might not be in a position to repay the principal or pay the interests at maturity. This risk is particularly relevant to bonds and other debt investments. To be safe, you should evaluate the credit risk of a company. You can do this by checking at the bond’s credit rating.

  • Concentration risk

This is the investment risk of loss when you concentrate your money in one type of investment or in one investment. To mitigate this risk, get 2020 medicare supplements @ https://www.medicaresupplementplans2020.com/ you can diversify your investments. This will help in spreading the risk over various types of industries, geographical locations, and different investments. In other words, don’t put all your money in one type of investment.

  • Inflation risk

Inflation risk refers to the loss or reduction in your purchasing power for the reason that your investment value doesn’t keep up with the rate of inflation. Inflation risk is relevant especially if you own debt or cash investments such as bonds. Real estate usually offers some level of protection against inflation because as the landlord, you can increase the rents of your property over time. Shares also offer some level of protection because companies can charge their customers more in line with the rate of inflation.

Tips for stock investment to senior citizen

Tips for stock investment to senior citizen

Senior citizens are not professionally active and would have retired from service. They might have some savings that would help them to pass the remaining years that they survive. These categories of people are the least risk takers in term of the investment. The most preferred investment option by this category people are fixed Deposit, government schemes and other maturity avenues which are the only means to protect value erosion of the money earned from hard work.

How can senior citizen invest in the stock market without worrying about the value erosion?

Disciplined approach:

It would be wise enough to limit the equities depending upon how the funds would be kept aside that are not immediately required. Senior citizens have substantial experience in their field. The knowledge gained from knowing the nitty and gritty of the industries they have worked in. this knowledge can help them in to look for opportunities as well as risk. Persons who have worked in banking sectors for years have better experience.

Time horizon:

Most senior citizens have access to a large pool of money earned by them via retirement benefits. The experts usually invest for the long term. Many experts suggest a timeline of at least 5 – 10 years. This time allows them to take a good company to overcome different market cycles and generate high returns. Mutual funds schemes allow for systematic transfer into any scheme and this would reduce time hazard.

Better Taxability:

Senior citizens have most of their saving in Fixed Deposits account. They get higher interest rates as compare to normal FDs and the interest income are taxable according to regular income tax slab rates.  An income from Long Term Capital Gains would, however, be charged at a substantially lower rate of tax. Dividends are similarly tax friendly.


Stock markets are not appropriate for many citizens. However, there are many citizens who didn’t worry about their daily expenses and their children don’t depend upon on them for any support i.e., financially. Such individuals can consider stock investing.

Things to consider before entering the stock market:

  1. There should be enough capital to fulfil their daily needs and requirements.
  2. Are you ready to take the risk or not?
  3. The corpus which would be used for trading and investing in the stock markets.
  4. Investing excess money that can be lost.
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Important and useful keys for a happy retirement

Important and useful keys for a happy retirement

There is a question that retired people also have to face and do not think in advance. They must learn to live together again, build a new life together, and this is a great challenge. Although it is not too frequent, retirees are more at risk of depression, especially in the first year of inactivity. Do not feel useful or the fact that this new stage is not as planned, that does not meet their expectations, can create a depressive picture. Visit www.medicareadvantageplans2019.org for information on 2019 medicare advantage plans.

Tips for coping with retirement:

However, there are some ‘tricks’ to better cope with this stage that, on some occasions, can become the best in life. The first thing that psychologists recommend is to be mentalized for when the time comes. Prepare your retirement with time and think about what activities you would like to do: Even try them before taking the step. For this phase can be very useful courses of preparation or advice to retirement, which have already yielded good results in certain contexts and have been hired, among others, by some municipalities. In the second place it is essential to stay active: Something in which, for example, the cardiologist Valentin Fuster, director of the Cardiovascular Institute of the Mount Sinai Hospital (USA), has been insisting for a long time who never tires of repeating that “people who have health and full faculties must remain active once that they retire “.

Painting classes, such as those taken by Fernando, 70-year-old banking retiree, who acknowledges that “it is a very widespread hobby among his generation, we are frustrated painters”; sign up for a gym, go for a walk, visit museums, cook or what everyone prefers. The important thing is not to stay at home without doing anything. The third recommendation is: If you do not know what to spend the time, use the way to help others, put at the service of others the knowledge acquired during working life or perform some type of volunteering. And finally: cultivate social relationships, resume friendships and stay with them. In this way, there are many activities to do. Perhaps the activity chosen is related to the profession you have had so far. Or maybe you consider that it is time to dedicate your time to a completely different objective or to an activity that until then has been a simple pastime. The options are endless.

How to cope with your retirement?

How to cope with your retirement?

Retirement is a period of abrupt change that affects many areas: economic, leisure, personal relationships, etc. It requires a time of adaptation, which can range from six months to a year. It is a time of risks, but also of opportunities.The way in which someone will face retirement depends on many individual factors but in general, it can be stated that men carry it far worse than women, because they are more accustomed to doing many things and to balance their employment with other activities, so this stage is not so hard. Then, it depends on if the person has hobbies, the degree of voluntariness that has been at the time of retirement, the type of work and mentalization of each.Following are some the activities will surely help you to cope with your retirement:

1. Volunteering:

You can dedicate your time to a good cause, either joining an organization or even setting up your own. A real case is that of Angeles Ramos, a woman who after retiring, founded her own association, called ‘Urban Angels’, which is dedicated to the reception and labor education of people with disabilities.

2. Do sport:

With age, it is essential to stay fit both physically and mentally. You can walk for an hour a day and exercise so that the brain does not rust. Read good books which can be easily available on the market or you can also buy from online stores. You can also do Sudoku, crosswords that keep your mind active. What better time than retirement to take care of yourself?

3. Enjoy with the family:

Spend time with yours, and if you are lucky enough to have grandchildren – Enjoy them! Make plans with them and share your experience with the little ones in the house.

4. Culture time:

It is never late if happiness is good. Being retired has a special category in society and that can be seen on the discounts that they offer both in transport and in museums. Take the opportunity to devote your time to art, enjoy a good museum and the activities they offer. There are countless things you can do at this time of retirement. It is not the end of the world. It is to start something new. The best: take it with philosophy, acquire a routine and exercise your mind. We are sure, if you will be engaged with these activities, you can easily cope with your retirement.

I Already retired, and now what do I do?

I Already retired, and now what do I do?

For many people, the arrival of retirement is one of the most feared stages of life. What am I going to dedicate myself to? Will I still serve for something? What am I going to do with all the time I am going to have? These are some of the questions commonly asked by people who have just retired. By breaking with the established routine of work, which has been part of a person’s life for 30 or 40 years, mixed feelings arise. The American psychologist Erik Erikson considers that every human being, throughout his life, goes through various stages of the crisis. And the way he solves them determines his adaptation process and his mental health.

Stop working marks a before and after in the life of anyone. For some, it is a crisis. However, others confess that they are at their best because they take the retreat as a reward for their life’s effort and choose to dedicate more time to themselves or take it as a good opportunity to do those things they had always wanted and could not do. For being dedicated to working, to children, etc.  therefore facing retirement can be enriching.

Here are some recommendations to successfully pass through the retirement stage:

  • •    Enjoy the grandchildren and the children.
  • •    Deepen in family relationships and with friends. It is necessary to schedule a life outside of work, if you do not have friends or do not carry out activities outside of work, you have to cultivate them.
  • •    Caring for a pet
  • •    Dedicate to a hobby, such as learning to paint, playing a musical instrument, practicing a sport, and so on.
  • •    Integrate into an activity that involves other people, such as dance classes or rhythm therapy.
  • •    Learn new knowledge and skills, such as a new language, computing, cooking, gardening, etc.
  • •    Participate in some volunteer organization.
  • •    Start a business of your own that allows you to work a few hours a day.
  • •    Travel, if you have enough resources to do it.
  • •    Avoid falling into the error of saying: “At this age, it is too late to do this”.

Finally, it is important to consider that, although for some the retirement is considered as the final period of life, the useful and productive stage of a person has nothing to do with an age limit, since we all have much to contribute to society at any time of our existence. Retirement is just another cycle of our life which should be considered to include 2019 Medicare Supplement Plans that are quoted at www.bestmedicaresupplementplans2019.com/ .

How to invest as a senior?

How to invest as a senior?

In order to stay secure and happy in the second phase of your life, you must invest now to enjoy the fruit later. The post-retirement period would be a hassle if you don’t have sufficient savings. You can make money by right investing plans. As the income source of people above 65 years of age is limited so get 2020 a medicare advantage comparison at http://www.medicareadvantageplans2020.org and they didn’t have enough savings, investing is the best possible ways to grow your money. Have a look on how to invest for making life easier in the second half of your life.

Fixed deposit investment

The fixed deposit scheme is noted as a safe and risk-free investment option. Fixed deposit account offers many benefits to its senior citizens like higher interest rates, assured returns, flexible tenor and much more. The interest rate of fixed deposit is comparably higher than the saving accounts. Many leading banks provide the interest rates around 7.85% on fixed deposit (FD) and an additional rate of 0.35% to their senior citizens which help them in planning a better retirement life. Opening an FD account is an easy task with a small amount of investment.

Mutual funds

Senior citizens may benefit from investing in mutual funds. It is one of the easiest ways to invest and is a good option for those who want to invest in a variety of things. It is managed by a fund manager who invests the cash into a variety of accounts with the aim of balancing risk and reward. Mutual funds provide a variety of schemes like long term funds and short-term funds. The long-term funds are for slower earning potential while the short term is for faster-earning potential. In the long term, you have to leave the funds for long term.  This fund has the lowest risk.

Stock Market

Senior citizens can also invest in the stock market. Stock market investments are risky and can be safe as it depends upon the type of investments you make. One can shuffle his/her stock market investments to achieve the preferred goal i.e., high risk for larger returns and minimal risk if you are close to your retirement.


The above investment options can be implemented by the people above 65 years of age to make their upcoming life easier and happier. Investments are subjected to risk so people must be aware of the policies of the respective investment programs.

Retired, now what do I do?

Retired, now what do I do?

Work is more than making money and being independent economically. Employment is also a way to develop ourselves as people and as professionals, in addition to the engine that allows us to get up every morning and make sense of the day. Therefore, when it comes to retirement, although we have had a successful career, it is important to find an alternative that allows us to feel useful both personally and with respect to society and the community.

What can I do once I retire?

The transition from working life to retirement can be complicated and take a while to adapt. Whether you have worked as an employee or as a self-employed person, it is a readjustment of the routine maintained during many years of adult life. However, it is important to get AARP medicare advantage plans 2019 to create new habits that allow us to organize our day and tasks. The options are endless, of course, but here are some ideas:

What to do when you retire?

1. Travel:

The paradox that if you have money, you do not have time to travel whereas if you have time, you do not have money, it disappears! Now you have time and money, so maybe it’s time to visit those countries or cities you’ve always wanted to meet. Or to visit your family and friends who live outside.

2. Study:

It is never too late to return to the educational system, which does not have to be related to job promotion and improvement of the curriculum. Studying for the simple fact of wanting to train in some field, maybe very different from your profession is a good way to stay active. It allows you to have some schedules, increase your knowledge, relate with other people and test your abilities.

3. Learn:

This point is in relation to the previous one but it does not imply enrolling in studies with a large teaching load or with many years to complete. Maybe you just want to learn to take pictures, to paint, to do yoga or to share points of view in a reading club. Planning your days with regard to activities that you like may be a good way to stay active.

4. Volunteering:

Spending your time helping others or participating in the community, animal or environmental associations, for example, allows you to invest your time for the common good. In this same line, mentoring can be another very rewarding activity. Today life expectancy is increasing, so it is important to stay active and enjoy new activities related to new ways of seeing life after retirement.

Supplement your retirement finances with those you receive from your children and government

Supplement your retirement finances with those you receive from your children and government

There are those countries where seniors beyond the age of 6 are entitled to senior funds aimed aiding them through their old age. If you have just retired, you need to register with such funds so as to be one of the beneficiaries. In most case, many seniors may ignore this since they consider such money as small handouts that may not help them due to it being meagre. It is important to consider taking this funds with open hand and also take advantage of money that will always be send to you by your children. Children send money not because you are handicapped but because they would love to make you happy just like did make them happy when you were still working.

How do we use money we receive from children and government a supplement?

Talking of a supplement, it is always something that will add up to what we have so as to maintain what we have and help it remain at the mark we want it to be. Whenever we receive money from government funds or from children, it helps us save our retirement finances as we will use that we have been given and avoid drawing too much from our retirement accounts. What will happen if you don’t withdraw your retirement money till you have attained the age of 85? It will mean that you get United Healthcare Medicare Advantage 2019 will still have enough finances at your disposal that will see you through your old age. With that idea in mind, it is very important to consider accepting money from your children from social security funds government by the government so as to help you safe a little bit of your retirement lump sum.

External receipts helps top up your accounts

Have you ever thought of a honey hive that keeps filling up each an everyday even if we keep drawing honey from it? That is exactly how your retirement finances should be. It is very important, therefore, to consider accepting money from your relatives if they are willing to offer money out of their love for you. This is important as it will help you continuously replenish you retirement financial accounts. However, if you have other sources of income such as income from rental properties, it is important to consider using such income so as to keep you retirement financial account up to the original mark at all times.