It is reported that by the year 2025 senior citizens will comprise the majority of the population in the United States. While baby-boomers are entering retirement age this has cast a cautious shadow upon the investment community. The security once felt among retirees has long since passed as they have witnessed the economy plummeting in recent years. The instability of the market, bank closures and the Fed also uneasy about future forecasts, offers little reassurance to those who have retired and those approaching their golden years.
The slow but continued increase in goods and services across the country have placed those belonging to the aged community at risk of losing their life savings, this combined with policies adopted by the current administration, such as the freeze on domestic spending, has curtailed the much anticipated COLA increases in Social Security payments. This action alone has devastated those living on a fixed income, and there seems to be no light at the end of the proverbial tunnel.
Seeking relief from this financial drought has caused many Americans, both retired and those still productive, to inquire about investment strategies to help in their plight.
The average citizen lacks the knowledge required to play the stock market, and must utilize the wisdom allegedly belonging to investment councilors. As with any investment the money placed in the hands of the trusted investor is subject to loss to which applies the saying, to the buyer beware.
Where should a new investment be placed is a common question asked of those undertaking the responsibility of spending, or investing, another persons money. High yield dividend stocks payÂ regular and sizable dividends to investors.Â Stock prices for this investment are not prone to fluctuate as readily as high-risk stock.
Playing, as it is referred to, the stock market is basically buying shares of a corporation. If a corporation has 2000 stocks outstanding and you own 100 shares, you have 5% ownership in the corporation. This entitles shareholders a certain amount of voice in the business affairs of said corporation. The greater amount of shares held, a greater amount of responsibility is acknowledged by the officers of the particular corporation. The key factor for investing in the stock market is the return, or income obtained during the process.
Another investment option is in the purchase of bonds. This investment is a debt instrument issued for more than one year with the purpose of raising capital which is accomplished by borrowing. A bond is a promise to pay the principal along with interest upon maturity. U.S. Treasury bonds are considered the safest, unsecured bond since the likelihood of the Treasury defaulting is almost non-existent.