If you are nearing retirement age, you need to start thinking about the best way to use your retirement savings. There are many options available, and the best option for you will depend on your individual circumstances. Bill Schantz of Mid Atlantic Financial LLC will now guide you about how and where you can put your retirement savings.

3 Best Options to Put Your Retirement Savings

High-Yield Savings Account

If you are looking for a place to park your money that is safe and provides a decent return, a high-yield savings account may be a good option. These accounts typically offer interest rates that are higher than those of traditional savings accounts. However, the returns are still relatively low compared to other investment options.

As a rule of thumb, you should only put as much money into a high-yield savings account as you are comfortable with having access to in case of an emergency. This is because these accounts typically have lower interest rates than longer-term investments, such as bonds.

Compared to a traditional savings account, you can earn a lot more interest with a high-yield savings account. Moreover, you also have the benefit of having your money FDIC insured for up to $250,000.

High-yield savings accounts are a good option if you are looking for a safe place to invest your money. However, you should only invest as much money as you are comfortable with having access to in case of an emergency. 

Short-Term Bonds

Short-term bonds are a type of fixed-income investment that matures in five years or less. These bonds are typically less volatile than longer-term bonds, making them a good option for investors who are risk-averse.

One of the main benefits of investing in short-term bonds is that you can ladder them. This basically means that you can spread your investments out over different maturity dates so that you have some bonds that mature every year. This way, if interest rates rise, you will still have some bonds that mature at the current rate.

While short-term bonds are low-risk investments, they do have one issue. Since the inflation rate keeps on rising, the value of these bonds will eventually deteriorate. This is why Bill Schantz suggests investing in Treasury Inflation-Protected Securities (TIPS). These are bonds that are backed by the government and whose value rises with inflation.

Short-term bonds are a good option for investors who are looking for a low-risk investment. However, one issue to be aware of is that the value of these bonds will eventually deteriorate due to inflation. 

Dividend-Paying Stocks

If you are willing to take on a bit more risk, investing in dividend-paying stocks may be a good option for you. While the stock market can be volatile, over the long run, it has tended to go up. And, if you invest in dividend-paying stocks, you will also receive regular payments (dividends) that can help offset any losses in the value of your stocks.

Bill Schantz believes that dividend-paying stocks are a good option for investors who are willing to take on a bit more risk. The main advantage of these stocks is that you will receive regular payments (dividends) that can help offset any losses in the value of your stocks. 

Conclusion

For people who are soon to become retirees, Bill Schantz has given some excellent advice on where they can put their savings. Through these options, they can get good returns and can live comfortably when they finally retire.