People reaching the decision point of whether it’s time to retire are no longer bound to looking at annuity purchases that are much less appealing. In the light of all-time lows in interest rates this is making traditional forms of income in retirement problematic. The alternative is spending your own money and surviving off the income. One of the best things you can do is think about downsizing and moving to a community of same aged people. Gloucestershire Park Homes are a perfect solution and you should check out Park Home Life.
A visit to an independent financial planner (IFA) is important in order to make the correct decision. Although the temptation might be to cash in and spend part of a lump sum, looking forward to how your desired lifestyle can be sustained ensures that professional advice is needed. An IFA will look at the risks involved and where you should be considering placing investments.
There is also something to say regarding the expense of handling your investment. Once again, technology is pushing down these prices, and you’ll want to keep an eye on how much you’re being paid from your money management plans.
For many individuals, early retirement may mean that this is the first time they have looked at a big investment other than their home. Cash in the bank can look enticing, but this is contradicted by interest rates, which remain extremely low. Keeping an eye on the stock markets will confirm that deposit accounts can be outperformed to a surprising degree by a diversified fund.