Why Bonds are Best Investments for Baby Boomers
With several hundred baby boomers nearing retirement in the coming years, there is much fear about how much strain the social security system can bear. Many analysts predict that when all of these retirees come to depend on social security to meet their post retirement living expenses, the entire system may collapse.
It cannot be said with certainty that social security is doomed but it is clear that in near future, Americans may get a much smaller percentage as social security than at present. What is certain is that retirees can no longer depend entirely on Uncle Sam for their post retirement living expenses.
While it is critical for every citizen to start saving for retirement it is now more important than ever for near retirees to ensure that they invest in safe avenues. In this way they can be assured of having a financially secure post retirement life.
Bonds as investment option
Bonds are the best investment options for people on the verge of retirement. These instruments are safe because they offer assured returns at the end of a fixed period. A bond, as opposed to equity, is a loan that you make to the issuer.
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