Real estate rentals and annuities are two of the options that are ideal for retirement planning.
It is estimated that half of the individuals who are retired are
unable to continue their standard of living off of retirement income
alone, there for it is vital to consider incorporating other options
into your goals.
- Compare the risk factors of each type of investment. The risks associated with rentals differ according to a number of factors, some of which include the location of the property as well as the value of the property you are trying to rent out. The risk for annuities depends on the amount of money you have invested, as well as the activity within the stock market.
- Compare the different types of annuities that exist. If you opt for the life or fixed annuity, you have considerably less risk than if you were to choose the variable annuity option. This is simply because the variable option is directly dependent on the investment activity. On the other hand, the life option provides you with a set amount of return on your investment throughout the life of the annuity.
- Take a look at the return on your investment with both the real estate rentals as well as the annuities. Determine whether the risk is worth the return.
- Consider the fact that you have to put in more effort in managing your real estate rentals than you do with your annuities. With annuities, you check on the status when you feel the need to. With rentals, on the other hand, you are expected to handle issues as they arise, which can be in the middle of the night in the event of a natural disaster.
No comments:
Post a Comment