|Some 67 percent of employees anticipate working for pay during retirement, according to the 2006 Retirement Confidence Survey. And many of these people undoubtedly think they will have to work.
How can you avoid becoming a working retiree? You can work at becoming a good investor. That means you need to identify and quantify your goals, invest continuously through good times and bad, and work with a professional who can help you choose the right investment strategies.
No matter what your plans are for retirement, you can help your cause by working diligently at investing.
Diversify Holdings Before and After Retirement
As you invest for retirement, you’ll want to diversify your portfolio by purchasing stocks, bonds, and other securities. But how should you invest after you retire?
Upon retiring, some people feel they cannot afford to take any chances with their money, and so they pour most of it into conservative vehicles. These investments do offer preservation of principal under many circumstances. However, if interest rates remain low for a long time, you may have trouble getting the income you need from these investments.
And that’s why you need to diversify your portfolio during your retirement years. Include some investments that offer growth potential, along with returns that are not so dependent on interest rates if you can afford to take on the additional risk. You could spend two or three decades in retirement - so you’ll want to invest wisely.
Contact Wendell at Edward Jones www.edwardjones.com.