Here's How To Invest After Retirement
Zacks Investment Research | Jan 15, 2019 07:25AM ET
Retirees often find themselves in financial setbacks. Even after having made enough investments in various retirement savings instruments, their nest eggs could be in danger of running out. With people living longer and concerns such as inflation, rising interest rates and high taxes, the elderly are faced with a unique financial situation.
To combat this, here are a few less-risky investment options that individuals can choose from to ensure a steady source of income. However, any investment decision must be made with thorough understanding of the financial product, taking costs into consideration.
Dividend Stocks
Investing in dividend-paying stocks is a great way to insure oneself from inflation. These stocks provide a stable dividend income regardless of overall performance or even market downturns. Individuals should look for stocks that have a consistent track of raising dividends and a dividend yield of at least 4%. Some prominent names that arise here are AMC Entertainment Holdings (NYSE:AMC) , Apollo Global Management (NYSE:APO) and Aircastle Limited (NYSE:AYR) , companies with current dividend yields of 5.7%, 7% and 6.1%, respectively.
Mutual Funds & ETFs
Those who are skeptical about buying stocks can try their hand at purchasing mutual funds or exchange traded funds (ETFs), comprising dividend-paying stocks and other securities. With a diverse portfolio of stocks, bonds and several other assets, these could prove less risky than stocks.
One of the most revered investors of all time, Warren Buffett, suggests investing in low-cost S&P 500 index funds as part of retirement planning. “Consistently buy an S&P 500 low-cost index fund,” he Zacks Investment Research
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