Retirement: What is the best income generator for retirees?

There is no "best" investment for any class of people; the best fit for a given retiree is going to depend on their personal liquidity, net worth, tax bracket, geography, life expectancy, desired standard of living, tolerance for risk, etc.

You want to have a minimum of 3 income streams.  One can be an annuity (deferred if you have time) OR your country's version of social security (which is in effect a modestly inflation adjusted annuity) taken at the latest possible date if you or your spouse have any expectation of living into your 90's. You don't need both if you maximize your social security. The second should be a real estate investment which throws off cash; a residential rental property or commercial rental property. This can be as simple as building and renting out a "granny" unit, or purchasing a house with a separate contained living space to rent, as I did. The tax depreciations in most countries for rentals are wonderful. The third can be a dividend account with solid stocks that throw off 6% dividends. Much more than that and you are entering into lesser quality holdings. When you buy stocks you are buying into a business and it should be both a business that you understand and that you want to own a piece of. A fourth income stream, especially if you live in the USA, is a reverse mortgage on your house. You DO have your home paid off to retire, don't you? The new FHA loans are much better than previous reverse mortgages and, BONUS, are considered a loan repayment by the IRS and not taxable income. If you live in the USA you'll want some CD's or bonds and your dividend stock in your IRA or 401K for tax reaons.  Regular stock would be held in a non-retirement account as "buy and hold" value investments. This would be the place for a mutual fund. I know that ETF's are everyone's darlings these days, but they are particulary exposed to the credit derivatives market, a place where a retiree can't afford exposure. Of course, you always want to have some money in a CD (Certificate of Deposit), equal to 10% of your holdings in case of a stock market crash. This easily available cash prevents you from having to sell in a down market. You could also use it as an opportunity to swoop in and capture more value stock. I've lived long enough to recognize that every 20 years there is a crisis that can be a golden opportunity.  You could also keep gold as a form of savings, but in the USA there is a 33% tax on capital gains on  gold. If you do purchase gold, always keep the sales receipt. It's not always what you earn, it's also what you keep. Watch the tax picture carefully.  Most people grow bored in retirement. You might consider a new career, consulting, or part time work in your current career. Personally I will never retire, it's just not as appealing as my work.

Many retirees just withdraw what they need from their savings to meet their current living expenses, without considering that they'll need to make these savings last for the rest of their lives. And most people withdraw too much and exhaust their retirement savings when they still have many good years of life remaining.To avoid this fate, set up a method of generating retirement income that's most likely to make your savings last for your lifetime and, if you're married, for your spouse's lifetime as well. There are three basic types of Retirement Income Generator: RIG #1: Invest your retirement savings, and use just the money from interest and dividend. RIG #2: Invest your retirement savings, and withdraw principal carefully, a method often referred to as "systematic withdrawals" RIG #3: Buy an immediate lifetime annuity from an insurance company And remember: "If you don't need it, don't use it."Call me at 813 964 7100 if you need a personal answer to your question or visit http://www.MintcoFinancial.com

In my opinion the best income generator for retirees are the following: Social Security, 401(k) or other savings plans and profit-based investements. These can help you cover your future expenses without exhausting your nest egg and becoming a burden to your loved ones. However, you need to start contributing early and maxing your contributions can also help you in the future. If these things are not enough, then you can consider reverse mortgage. It is a type of loan that allows you to tap to your home equity and use it to cover your health care or long-term care expenses, mortgage and others. This is beneficial but it comes with certain risks so experts recommend learning the ins and outs of this type of loan first. I've read from revmortgage several reverse mortgage guidelines from requirements to different steps involved in getting a reverse mortgage. For additional resources, feel free to use these government websites: http://www.consumer.ftc.gov/articles/0192-reverse-mortgages http://portal.hud.gov/hudportal/HUD?src=%2Fprogram_offices%2Fhousing%2Fsfh%2Fhecm%2Frmtopten

A rental property in a safe country with currency stability is the key. If possible live in the vicinity of the property to manage yourself or invest in REITS of that country.

Arguably, the best income generator at the moment would be an investment that is relatively consistent in its returns with minimal volatility.  Short of an annuity, most of which are yielding very little given historically low interest rates, your best bet is to invest in some mix of higher yielding bonds with the option to either hedge out risk or diversify sufficiently.  I don't trust equities at all (for numerous reasons that I'd be happy to discuss) but, if you're willing to gamble your money in stocks, just put it into an index fund and don't pay fees to equity fund managers, most of whom won't/don't beat the indexes.  That said, if you want exposure to bonds, we have a bond fund that focuses on loans originated by marketplace landing platforms, e.g., P2P loans, P2B loans, etc.,  and is on track to generate a yield of at least 12% on an annualized basis with less that 1% volatility.  And, yes, while this may seem like a self-serving post (which it is), it's also true that these yields about which I write are real and I have no shame about inviting you to see and enjoy for yourself.