Question

list four investments options that are avaliable for a person to invest in preparing a nest egg for retirement . Decide on the persons age as of today , then propose the investment options .

Answer 1

Well,

Assuming he is having 40 years of age and he is planning to retire on 70.

There are lots of investments can be made.

1. Investing in a dividend paying blue chip company

which means a big firm which has a steady growth with normal dividend payouts could be a better option. However company selection is a key thing, rather than random selection it will be logical to select one by doing fundamental analysis. Eventhough this is riskier, create a strong diversified portfolio can mitigate the loss from any one of the stock.

2. Savings for retirement

At the time of retirement he should have liquid cash in order to get that he can engage in savings plans which is less risky.Some of the banks provides these facilities for 10 to 30 years. Eventhough returns are less, it is good to save this way also.

3 Government bond investments

Government bonds are some of the safest investment which are available. So investments in bonds with good coupon rate for 30 years can earn him a decent amount at the time of retirement.

4. Investing in health care:

At the time of retirement it is probable to have lots of health issues so, this will be a major expense to be considered. Therefore investing in a reputed health insurance company can be helped to tackle the issues.

5. Investing in proper start ups

We know that if a proper start up issues initial equities it will be very cheap. Therefore taking some time and studying about 5 to 10 start up companies by analyzing its fundamental performance can give an idea about 3 good start ups which are futuristic and can bring wealth.Invest in a good quantity, if any company got successful in delivering the product, then that company can bring fortunes in future.