It is necessary to invest in funds in order to live the golden years of your life in a hassle-free manner. Here are the top 5 retirement funds you must invest in so as to procure huge benefits.
Building a portfolio of stock and bond index funds
Building a portfolio of stock and bond index funds is the most effective and one of the top 5 retirement funds. It is designed in order to achieve a set of withdrawal rate rules which will enable taking 4-7 percent every year. In some years, it will be enhancing the withdrawal due to inflation. It is possible to take withdrawals with the help of systematic withdrawal plan. There is a wide variety of total return investment strategies which includes asset liability matching, time segmentation, etc.
Using retirement income funds
Retirement income funds are considered to be a special kind of mutual funds. They enable allocating the money in an automated manner across a diverse portfolio of bonds and stocks. The investments are managed with the objective of producing monthly income. These funds are built for providing an all-in-one package, which is designed for accomplishing a specific goal.
Immediate annuities are one of the top 5 retirement funds. Their ultimate goal is producing income, which you would require during retirement. With an immediate annuity, you will be able to ensure future income at ease. In exchange for lump sum payment of money, the insurance company will be offering guaranteed income for life.
Bonds are an indispensable part of the top 5 retirement funds. When you purchase bonds, you are lending your money to a corporation, government, or municipality. The borrower will be paying you interest for a specific span of time and as the bond matures the principal is returned to you.