Five Funds For Retirement

You look at things differently when you're about to retire. You're far less likely to buy a trampoline, for example. And you're probably far more risk-adverse in your investments, too. And that's a good thing, because you will no longer have an income that will replace your losses in a downturn. And unless you can generate enough income to cover your withdrawals — an unlikely feat in this low-interest world — you're going to have to learn smart selling, rather than smart buying.

You should have a variety of funds that invest in different types of investments: Stocks, bonds, cash and others. Diversifying among different types of assets reduces your risk. The days of owning a few stock funds should be long gone. In a downturn, all your holdings will simply fall in tandem. Here are five funds you should consider as part of a retirement portfolio: Vanguard Target Retirement Income (VTINX), RiverPark Short-Term High Yield Retail (RPHYX), Schwab U.S. Dividend Equity ETF (SCHD), American Century Equity Income (TWEIX) and Vanguard High Yield Tax Exempt (VWAHX).

Source: USA Today

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