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When people have worked hard over the years and built their retirement savings, they want to retire comfortable and receive enough income and social security benefits to sustain them for the rest of their lives. Luckily, there are various high yield investments to work with to acquire more revenue without the extra work.

Financial advisors encourage clients to diversify their income sources in an investment portfolio to bring down volatility. Diversification by geography, investment strategy, and asset class reduces the overall risk. Investors should combine lower-yielding investments with high-quality fixed income to balance the yield and the risk. Diversification benefits were evident during the Coronavirus pandemic upon the stock market plunge. Highlighted below are a few tips to boost one’s retirement income without the extra work.

Buy Municipal Bonds

One of the advantages of purchasing municipal bonds is that the interest paid is exempted from tax at the federal level. Purchasing bonds within a home state boost income. Bonds have lower risks, and their interest payments are twice a year.

Hold Social Security

The social security benefits are determined by the amount of money a person earned when working in the beginning. Filing payments past full retirement age increases the benefits. People holding off social security receive an 8% benefit increment every year until they reach age 70.

Open Roth IRA Account

A Roth Individual Retirement Account (IRA) is a retirement account where one pays taxes on money deposited while future withdrawals are tax-free. There is no imposed minimum requirement on a Roth IRA. Therefore, people can leave their money in the account as long as they want.

Reduce Investment Fees and Expenses

Fees and expenses related to investments reduce returns. The easiest and fastest way to increase retirement income is by reducing these costs. Exchange-traded funds and mutual funds’ investments have hidden fees that don’t appear on fund statements. Other fees and expenses in some investments include transaction fees and internal expenses. Choose products with lower costs and ask financial advisors to use these options in the portfolio to increase returns.

Hold Stocks that Guarantee Dividends Payment

Investing in stocks that have a history of paying dividends can generate more retirement income. Most stocks have an average yield of 4%. Do some research and get complete information about the many different types of stocks and their yields before making a decision.