"After retirement, $1 million should be spent?"

"After retirement, $1 million should be spent?"

Many people worry about where to invest it to be safe and earn money every month. In fact, there is no need to take a high risk. Just systematize the money so that it can be stable, have a continuous income and fight inflation.

1. Emergency reserve

After retirement money is not only spent on eating, but also unexpected expenses, doctors, medicine, home repairs, broken cars.

Therefore, part should be divided into emergency reserves, stored in a safe place, immediately withdrawn, such as

- Short-term government bonds / bond funds;

- High interest accounts / money market funds

The main purpose is not the return, but the peace of mind that if something happens, not the loan, not the main sum.

2. Stable investment

Some of the remaining sums should be selected in stable assets to maintain the principal, e.g.

Government bonds / fixed income funds

Interest averages 2-3% per year.

Low risk. Fits keeping principal.

The return may be about 2-3% a year, it doesn't sound like a big deal, but the advantage is that it's comfortable, because the principal is safe, suitable for people who want to spend their retirement without much hope.

3. Invest, generate cash flow

One of the main goals after retirement is to give money to work instead, to make money without us having to work ourselves.

- Big, stable dividend stocks.

- Property Fund (REITs)

- 3-6% annual average dividend income

Both options provide an average dividend income of 3-6% per year. For example, if you divide 500,000 baht into shares, the average dividend of 5% will receive a dividend of 25,000 baht per year, or about 2,000 baht per month. It is easy to use for electricity, water, water and supplements.

4. Spread to fight inflation

Don't forget that inflation is the silent enemy that causes today's $1 million to continue to decline every year, so share the other money with assets that have the opportunity to grow economically, such as

- Mixed funds (stocks + debt securities) allow for continued growth, not depreciation with inflation.

- Some Index Fund, so that the sums continue to grow and do not depreciate until they buy less.

After retirement, a million baht may seem like a lot, but if you don't use it for a few years, it can disappear as well. It's important not just to keep it or invest it for the highest return, but to set aside the money to solve your real life.

Steady = You can live every month. Don't worry about running out of money in the middle of the way.

Have Income = This lump sum constantly generates dividends or interest for you.

Fight inflation = money held does not depreciate until it buys less every year.

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