There’s no doubt that as we get older, our investment strategies tend to become more conservative. This is especially true for the approximately 10,000 baby boomers who retire every day, and are counting on those investments to provide their retirement income. However, it’s unwise to simply base your investment strategy on your age and completely dismiss the current favorable economic climate. Why should the young be the only ones to enjoy this investor-friendly market? You’ve probably heard the saying, “Youth is wasted on the young, and wisdom is wasted on the old.” When it comes to your investment strategy, combine the wisdom of your age with the more aggressive attitude of your youth to maximize your gains for a more profitable retirement. Here’s why.
We’re in Good Economic TimesWe are currently in a long economic recovery period with very low-interest rates, no immediate sign of inflation, and a global economic recovery seemingly on the horizon.
We’re Living LongerSince we’re living longer than ever before, the money we invest will need to last longer. This is why new regulations, such as the SECURE Act, are being introduced. If you turn 70½ after December 31, 2019, you can now wait until you turn 72 to begin taking Required Minimum Distributions (RMDs) from your retirement account.
How to Invest Like a MillennialThese conditions may warrant taking a hybrid approach: Combining your conservative investments with a more active strategy that you used during your younger years. Many financial advisors suggest their clients allocate more cash into safe investments like bonds or cash market accounts as they get older. However, in this current low-interest rate environment, there are many dividend stocks you should consider. Which companies pay giant dividend yields?
- Exxon Mobil
- Johnson & Johnson