retirement

5 sound investment strategies for retirees

Balanced funds own a mix
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textBalanced mutual funds are a good choice for conservative investors because they provide exposure to stocks and bonds in one fund, says Evan Shorten, a CFP with Paragon Financial Planners in Los Angeles. "Balanced funds with 20 (percent) to 40 percent of their assets in stocks, and the rest in bonds, are going to give you consistent returns with a potential for gain on the upside," he says.

Even though you may be nervous about investing in stocks, it's important to have some type of stock component to your portfolio to provide growth over the long term because you don't want to outlive your assets. "In spite of the short-term volatility, (stocks) have an expected return that is higher than inflation," says Corn.


 

 

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