How are you really going to fund your day-to-day expenses in retirement? A recent Wall Street Journal report pointed out something that has been on my mind lately, as my parents prepare to retire. They're in pretty good shape, financially speaking, and one key source of their income will be the pension that my dad is set to receive from a former employer.
That can be a challenge. But investing in dividend stocks -- before and during retirement -- and letting the dividends contribute to your income once you're retired can be a great way to meet that challenge. The best dividend stocks -- those of steady, blue-chip companies with long histories of increasing dividends -- have advantages for folks near or in retirement that few investments can match. Those advantages start with the dividends themselves, of course, which can be reinvested for extra growth until you need to start taking them as added income.
Source: Motley Fool
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