In just the last six months, the convergence of historically low Treasury yields, increasing stock market volatility, and the looming threat of a recession has been creating a challenging time for income-seeking investors.
We believe that it is critically important for retirees and pre-retirees to understand the risks of reaching for higher yields and to consider alternative strategies for creating lifetime income sufficiency.
Right now, a rising-dividend strategy may be the best option for weathering the storm while generating a sustainable and growing income.
(Trey Welstad, November 2019)
Retirement isn’t a game. The financial stakes are serious. The prospect of running out of money in retirement is terrifying and real.
In the search for retirement income, many investors often:
- Underestimate inflation risk.
- Sell dividend paying stocks.
- Lock in low income for life.
- Chase yield.
- Hold more bonds than stocks when interest rates are low.
(Michael Morey, August 2019)
How to Use Dividend-Paying Stocks to Create a Strong and Growing Retirement Income
Americans are living longer than ever before. That means retirement nest eggs
need to last longer than ever before—and generate a steadily-growing income to
keep pace with the rising cost of living throughout their retirement years—and to
be sustainable in both bull and bear markets.
(Shannon Radke, April 2019)