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...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
A select group of monthly dividend stocks pays dividends at a rate of 10% or higher. Those are the ones on this list. Investors should be aw...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.