Monday, January 18, 2016

Retirement Financial Security

I used to think having a large amount of investment assets would create retirement financial security.   Then came the 08/09 financial crisis.   This event has caused me to rethink depending mostly on stock market capital gains to support us in retirement.  Gone are the days of 7- 8% average returns for the stock market.

After a little more than 8 years of early retirement, I am revising our investments to create a steady stream of retirement income from our savings: a retirement paycheck.   Unfortunately, money market rates are less than 0.1% and short term CDs are about 1% and won't be returning to 5% during my lifetime.  I've outlined my current thinking in Creating Steady Sources of Income in Retirement,

Recently, I've been taking advantage of the stock market volatility to increase our holdings of dividend paying stocks.   With the current sector corrections, I've been able to purchase energy stocks with dividend percentages ranging from mid single digits to mid teens.  As the market falls further, I plan to continue adding to a few of these positions, and initiating some new positions with stocks from other sectors.

For more on Strategies and Plans, check back Mondays for a new segment.

This is not financial advice. Please consult a professional advisor.

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