Retirement Stocks

B y w w w . P r o f i t a b l e I n v e s t i n g T i p s . c o m
Retirement Stocks

http://profitableinvestingtips.com/stock-investing/retirement-stocks
Investors typically look for reliable
income from retirement stocks.

Thus it should come as no surprise
that the stocks seniors love are
primarily blue chip dividend stocks.

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Before We Continue…

Forbes writes about seniors’ stock
preferences.

Replacing Berkshire, Facebook and
Bank of America in Seniors’ portfolios
are Verizon Communications, Pfizer
and IBM which do not appear in any
other group’s top ten.

Sherrod points out, “In the Boomer
and Senior portfolio you’ll see a little
bit more in the way of high yield and
with the Millennials you’ll see a little
more in the way of high beta.”

In other words older generations are
investing for income while younger
generations are investing for growth.

This may be one of the reasons AT&T
is popular with these groups – the
telco has a 5.4% dividend yield.

This may also account for some of
their relatively lower interest in
Berkshire – Buffett doesn’t pay a
regular dividend.

The retirement stocks most loved by
seniors and their dividend yields are
these:

Verizon
Communications,
4.46%
Pfizer, 3.25%
IBM, 3.04%
Apple, 1.59%
AT&T, 5.36%
GE, 3.34%
Exxon Mobil, 3.41%
Microsoft, 2.6%
Johnson &
Johnson, 2.99%
Intel, 2.92%

The retirement stocks chosen by
seniors are solid companies with a
reliable dividend check and solid
R&D.

Stocks versus Bonds

The IRA Market Report looks
at dividend stocks versus bonds in
retirement.

[D]ividend stocks are often better
than bonds for retirement investing
for a number of reasons.

While bonds have traditionally been
viewed as a sure bet for retirement
investing, the low yields of today
mean that you must invest nearly $1
today for every $1 you want to take
out in retirement.

If inflation rises considerably
between the time you purchase the
bond and the time that you retire, you
will lose a significant amount of the
purchasing power of your account.

Most people would prefer investments
that grow faster and compound to
provide them with more money in
their retirement years than they
originally put in.

If you retire in your sixties and expect
live another twenty years or more you
will want to see some growth in your
retirement portfolio.

If you purchase these stocks before
retirement and put them in
your IRA you can defer taxes on the
dividends until you withdraw and are
in a lower income bracket.

Mistakes

According to The Street the
biggest retirement mistakes have
little to do with choice of retirement
stocks.

The biggest mistake is not taking
advantage of tax deferred retirement
accounts.

“Not maximizing retirement
contributions is a major error that a
lot of people make,” Slott says.

“People need to take advantage of
every option to keep putting money
away in a retirement account.”

Slott tells folks aged 50 and older not
to miss catch-up contributions so as
not to lose out on opportunities to
save for retirement.

He adds that future retirees should
take advantage of spousal IRAs for
nonworking spouses and tells them to
keep making Roth IRA contributions
even after 70½ if they have the
earnings.

Another big no-no in Slott’s opinion:
retiring too early.

“The longer you work and keep
earning, the more retirement money
you can continue to sock away in a
Roth IRA,” says Slott.

“If you are still working, you can
probably avoid taking Social Security
for longer, allowing your future
benefit to increase substantially.

From age 62 to age 70, your monthly
check goes up every month you
delay.”

Work long enough. Take advantage of
every tax advantage retirement vehicle
that you can.

And pick solid retirement stocks that
pay healthy dividends.

Retirement Stocks

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