Eventually stocks will have to be sold to purchase additional fixed-rate investments for income. This approach offers many advantages. Your income will be guaranteed for a predetermined number of years before having to sell stocks. You will be able to continue to participate in the stock market as a long-term investor which along with diversification are the keys to reducing stock market risk. You will be in complete control of your plan rather than letting the markets be in control of you.
Retirement planning includes much more than just investing capital for growth.
The ultimate goal is steady, dependable, and lasting income. This is a challenge filled with many uncertainties. But with careful planning that includes deliberate maximum stock holding periods, we can all balance the competing needs of guaranteed income and long-term growth during retirement. Inc. All Rights Reserved.