Investment Plans for Your Upcoming Retirement

by | Sep 11, 2014 | Financial Featured

InvestThere are four main categories for traditional investment plans suitable for retirees. These include employer backed retirement plans, government-sponsored, individual plans, and annuities. While these provide many reliable features, many individuals are looking for creative ways to invest. The follow article briefly describes the four conventional types of plans and explains a few unique options for investing.

Traditional Investment Plans:

Employer-Sponsored Plans

Under the category of employer-sponsored plans, there are two basic groups. These include non-qualified and qualified plans. The qualified plans meet various tax regulations while the non-qualified usually place more restrictions on the retiree. However, both types can allow for numerous benefits to the individual. Once again, the guidelines will depend on local regulations and policies. Additionally, non-qualified plans may not meet code requirements.

Government-Sponsored Plans

Depending on the part of the world where you live, many countries provide sponsored plans for retirees. For example, the United States has traditionally offered a Social Security plan that meets some of the basic needs for retired adults.

Individual Plans

Individual or ‘personal plans’ include the traditional Individual Retirement Agreements (IRA). These plans include a variety of options.


Annuities include insurance company contracts and include variable and fixed annuities. Typically, annuities provide a fixed monthly payment at the age of retirement, and there are different types, such as joint and 50% benefits.

Unique Investment Opportunities for Retirees:

Binary Options

RetirementBinary Options investments have become popular in the last few years. Moreover, due to heightened regulations, they provide exciting options for retirees. They include two kinds of results in the form of ‘cash-or-nothing’ and ‘asset or nothing’ options. A comprehensive binary options guide is best for learning about the several advantages these have over traditional investments, as well as the risks you should also be aware of.

Real Estate Investments and Investment Trusts:

Real estate purchases provide specialized investment opportunities. Additionally, real estate investment trusts (REITs) allow investors to capitalizing on rental incomes. These come from properties such as hotels, business complexes, shopping strips or malls, and other holdings.

Commodities and Futures

Commodity markets offer a unique form of investment, based on speculation. These include precious metals, various energy sources, livestock and agriculture. They can add depth to an investment portfolio. The commodity either physically backs the options, or they are based on the future of the commodities.

Peer Lending

Another form of investing is peer-to-peer lending. Currently, several lending groups cater to peer-loans. After careful screening, lenders and buyers are matched to the benefit of both parties. One advantage is that lower interest rates are available to borrowers and investors collect a retirement income. A disadvantage is that a default can occur on the loans.

Forex Trading

Forex means ‘Foreign Exchange,’ and is a trading method that has become increasingly popular in recent years. It involves the trading of different international currencies such as US Dollar (USD) against the Japanese Yen (JPY). Most trades involve a broker. Traders select pairs of currency that trade against the other with the first (primary) currency being the one traded against the other (secondary) currency.

The various forms of traditional and unique investments above offer several ways to prepare for an upcoming retirement. Because non-standard methods involve additional risks, it is important to consider the ins-and-outs of each plan.

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