If you’re a retiree, you probably still need stocks as a big chunk of your investments. People make mistake of dropping stocks completely at age 55 or 60, says Susan Garland, editor of the Kiplinger’s Retirement Report. You do want to decrease your stock exposure as you age, sure. But you cannot drop them: Stock gains can help sustain your nest egg if you live to 75 or older. They're inflation fighters, and the dividends they provide can be a source of income. Garland says the rule of thumb is that 100 minus your age should roughly be the percentage of stocks in your portfolio.
Here’s what Bill DeShurko, manager of the Dividend and Income Plus investment model at Covestor, had to say about stocks for retirement:
Low interest rates, volatile market, and a little bit of greed leads retirees to want to believe in sales pitches. Inside the broker industry, variable annuity sales are huge. The sales pitches of guaranteed income and stock market returns, (which is too good to be true), has retirees pouring money into complicated products with extremely high fees and surrender charges, that are most likely to disappoint down the road.
Source: Fox Business
Related Articles:
- Finding The Perfect Dividend Stock
- The Elite Dividend Stocks
- Warren Buffett's Two Investing Rules For Dividend Investors
- 10 Stocks That Have Paid Uninterrupted Dividends Since 1899
- 4 Communications Services Stocks With Increasing Dividends
Why Retirees Still Need to Hold Stocks
Posted by D4L | Tuesday, September 18, 2012 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
Since the market highs in July, stocks have been under considerable pressure. Indeed, 10-year Treasury yields are at the highest level since...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
Despite all that work, its valuation remains dirt cheap. That's a big reason why its distribution currently yields more than 9% despite ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.