Investing at different stages of life requires different strategies. Many investors learn this too late to maximize their profits. If you’re an investor who’s approaching or already in retirement, then today’s blog is for you. I’m about to reveal three investing lessons every retiree needs to be aware of.
First things first, I tend to divide stocks into three different categories: Conservative, Moderately Aggressive and Aggressive. As a retiree you want to make sure you’re investing mainly in Conservative stocks.
Conservative stocks are less volatile than the other two categories. They aren’t given to the same price fluctuations as their more aggressive counterparts. Therefore, their value is more stable. Younger investors might be in a position to take a chance on more volatile price swings. As a retiree, however, you don’t want to bet the farm on stocks with wide price fluctuations. They could wipe out your fortune as quickly as they make it.
You also want to make sure you’re fully invested in fundamentally superior stocks. These are the stocks I consider Strong Buys. You can discover my rankings of more than 5,000 stocks by running them through my proprietary Portfolio Grader tool. I recommend retirees stick with A-rated stocks. Even though a B-ranking still qualifies as a Buy in Portfolio Grader, B-rated stocks simply don’t have the same fundamental superiority as their A-rated counterparts. Therefore, they don’t have the stability many retirees need from their investments.
Finally, as a retiree, you want to be certain you’re receiving dividend income. This is the trickiest part of retirement investing. With poor fundamentals, many high-yielding dividend stocks are extremely dangerous. Often times, the higher the yield, the more dangerous the investment. Again, I recommend you run any dividend-paying stocks you’re interested in through my Portfolio Grader tool and only invest in the ones with an A-ranking.
One way to be sure you have everything you need to successfully invest through your retirement is by joining my Blue Chip Growth service. Blue Chip Growth is an excellent source for discovering fundamentally superior stocks. All of my recommendations in this service are listed as either Conservative, Aggressive or Moderately Aggressive, so you know exactly what you’re investing in. I also keep my members abreast of any changes in a stock recommendation’s Portfolio Grader ranking, and I track all my dividend-yielding stocks in Blue Chip Growth’s Dividend Center.
If you’re truly interested in making the most of your retirement, I urge you to give my Blue Chip Growth service a try. Of course, if you’re not ready to join Blue Chip Growth today, stay tuned into this blog where I’ll continue revealing many of the ins and outs of my investing strategies.