Stocks for Your Portfolio During Retirement

Investing for retirement has changed significantly in modern times. Previously retirement investing meant selling stocks (typically with low yields) and reinvesting that money in high grade bonds with higher and dependable yields. Capital preservation was all important. The background for this thinking was that retirees would live quietly and life expectancy was not long. Now many retirees have more active lives and life expectancy is longer. At a retirement age of 65, many expect to live for 20-30 years, and, more importantly, enjoy a much higher quality of life than in the past (some work full or part time). Lifestyle changes make it necessary to rethink investment objectives and a longer life expectancy requires a more aggressive approach for growing investment values.

The concept of capital growth should not be forgotten or discarded during retirement years. Growth in investment portfolios increase the value of the estate. More importantly, larger investments provide additional funds in later years when expenses can rise dramatically. Each person must decide what balance of income and growth is appropriate, but growing investment worth should be considered an essential objective. With more of the population living active lives in their 70s, 80s and even 90s, Dividend Aristocrats are excellent investments, which have rewarded stockholders with dividend growth and capital gains. Investing in retirement years requires as much attention as in prior years. Long term goals shouldn't change much in later years, growth remains a key consideration.

Source: Seeking Alpha

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