Retirement Investments

Reverse Mortgages: Here's a way to use the value stored in the house you already own to provide you with a comfortable monthly income for many years.  Here's how they work: In the US, you must be at least 62. A reverse mortgage is a type of loan. With each payment that is made to you, your equity in the house is reduced. With most reverse mortgage loans, the payments can be used for any purpose you wish. You will still get any leftover equity when you move out or  the home is sold, and your heirs will get the remaining equity after your demise. How much income can you get from a reverse mortgage loan? Here's a very  simple Reverse Mortgage Calculator - you only plug in 3 numbers: your age, the value of your house, and your zip code, and it tells you everything.
In a February 24, 2006 article in the New York Times, titled "Increasingly, the Home is Paying for Retirement", there are facts about some older Americans who are "cashing out" of their homes in order to get a supplementary income. Many people who do not qualify for a regular home equity loan, (because they're retired and their monthly income is low), can qualify for a reverse mortgage loan. There's special insurance that protects the reverse mortgage lender financially. A reverse mortgage can be a good solution for low or high income homeowners, and it can work whether  the home is a bungalow or a mansion.

Muni bonds can be issued by a state, city, or even an airport or seaport. The interest on many types of municipal bonds is exempt from federal income tax, and from tax in the state that issued them. Payments may be made at six-month intervals, or at maturity in 20, 30, or 40 years, or on other payment schedules.

US Treasury Series I Bonds have inflation-indexed earnings. The composite interest rate can never go below zero, so the investor can never lose money, even during a period of deflation. The interest rate is made up partially of a guaranteed fixed rate, and partly of a semi-annual inflation rate, which is adjusted twice a year.

Bank CDs: Certificates of deposit offer a safe investment with a good APR, with the trade-off being a penalty for cashing in the CD before its term is complete. You can search for the best CD rates at websites like bankrate.com. A technique that many investors use to get a good mix of high CD interest income, with the flexibility of having a CDs maturing relatively frequently, is called the "CD Ladder" strategy. For example, after setting up a three-year ladder, the investor has one-third of his investment maturing each year.

Dividend Stocks: Stocks which pay regular dividends can provide a good source of income. Although they are not without risk, many retirees choose to make them part of their portfolio. See our sister site, HighestDividendStocks.com , for more information on dividend-paying stocks.

Here are some books about investment strategies for a comfortable retirement:

Immediate Annuities

AARP Reverse Mortgage Info