Your portfolio no longer needs growth investments. Lots of investors think their first day of retirement is the last day their nest egg needs to grow. Unfortunately. as most retirees discover, the cost of living doesn't stop rising after retirement. 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.