Retirement income planning – Top three funds to invest in

Average living years of a human is considered to be about 90 years, so you have almost 30 years more to live after doing the traditionalretirement income planning at age of 65 years. In the present era, you have to plan everything in your life beforehand. People nowadays calculate how much money they spend in a week, month, or year and start saving accordingly. For example, if you earn $5000 a month, then you make $5000 as your per month expenditure when you retire. But if you look at the bigger picture you might notice that a big amount of money as savings would not be fruitful unless you know how to turn it into income. Some of the retirement income plans can turn your savings into income are:

Mutual funds: In layman terms, mutual funds are money collected by a large group of people and then further invested by an experienced fund manager into share market. Mutual funds are a boon to people who do not have enough knowledge about share markets and are ready to take the risk to get higher returns. You can increase your profit in share market with proper retirement income planning and by increasing the duration of your investment.

Bonds: A bond can be considered as a fancy IOU. Companies and firms issue bonds to carry out their day-to-day operations, so in simple terms, you loan your money to these companies by buying their bonds and in return, you get interest on that loan. Bonds are payable by the issuer on a specific date or anytime in future.

Annuities: Nowadays annuities are considered by most people while doing their retirement income planning. You must invest in annuities if you want to get a steady stream of income during your retirement. Annuities are basically of two types immediate and longevity. Under immediate annuity, you invest today and start getting monthly payments from that day forward, while in longevity annuities the monthly payments begin in some point in future.

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