3 Top Stocks for Retirees to Buy

Because retirees can have very different investment goals than workers, the companies owned in your portfolio before retirement may not be the best companies to own afterwards. After all, it's easier to look beyond the market's inevitable drops when you have a paycheck coming in than it is when you're relying on your savings for retirement income. With that in mind, we asked some of our top contributors to weigh in with their picks. Here are three companies that they think make sense for retirees, and why.

When building a portfolio in retirement, it can help to focus primarily on income-generating stocks with lower volatility thanks to popular brands. Johnson & Johnson (NYSE:JNJ), the maker of big-name consumer goods such as Listerine and Band-Aid, is also a major player in drug development and medical devices. The Consumer Discretionary Select Sector SPDR ETF (NYSEMKT:XLY) is an exchange-traded fund providing exposure to nearly 90 companies in the consumer-discretionary sector. One stock that stands out as a great investment for those in retirement is Magellan Midstream Partners (NYSE:MMP). Unlike many other companies in the energy space that vacillate with the price of oil, Magellan's business of transporting and storing crude oil and refined petroleum products is mostly done under long-term, fixed-fee contracts.

Source: Motley Fool

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