To maintain the buying power of your portfolio over many years or retirement, you have to keep growing. That means holding at least some stocks, the only investment that historically has outpaced inflation by a comfortable margin 3. Stocks are too risky. Many people also shun stocks as too volatile for their golden years. But as the risk of stocks historically have declined the longer the holding period.
Bonds are the only income investments.
There are several income investments you may want to consider including high-yielding stock funds, utilities funds, investment certificates and money market funds. Each of these investments has its own potential for risk and reward, so you'll want to learn about them before investing. You no longer need tax-advantaged accounts. Many retirees find that with Social Security benefits, a pension and investment income, their income tax rate is as high as it was when they were working. While your contributions aren't tax deductible, earnings are tax-free if you keep the money in the account for at least five years.