The retirement investment portfolio includes the allocation of money in various aspects of life after retirement. It is one that meets your financial needs for the rest of your life. The following characteristics can help to make that happen.

Growth Stocks

Retirement plans that grow over long periods of time. Stocks and real estate typically form the most successful retirement portfolios, at least when they're in the growth phase. A portion of your retirement savings grows faster than the rate of inflation, which is the rate at which prices rise over time (Cussen, 2023). Doing so allows you to increase your purchasing power over time.

Portfolio Diversification

Approaching retirement age will have a different outlook for each person. When looking at corporate bonds, preferred stock offerings, and other moderate instruments can still generate competitive returns but with less risk than pure equities.

When looking at other investments, such as precious metals, derivatives, oil and gas leases, and other non-correlative assets, can also reduce the overall volatility of your portfolio (Cussen, 2023). This would help to generate better returns during periods when traditional asset classes are idle.

Risk Tolerance

Reaching closer to retirement you may need to focus less on growth and more on capital preservation and income. Instruments such as certificates of deposit (CDs), Treasury securities, and fixed and indexed annuities may be appropriate if you need a guarantee of principal orincome. There will always be different risk tolerances, and if you intend to work until a later age, you might be able to take greater risks with your money. The ideal portfolio is ultimately dependent upon you and on what you are willing to do to reach your goals.

  

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