It is quite likely that the income earned from the application of this equity will account for a significant portion of the money with which you guarantee your livelihood after retirement. Risk should be lower regardless of your appetite for risk, ideally, you should adopt a somewhat more conservative investment strategy. Remember that you depend on the income of the applications to live and that you no longer have enough time to wait for the recovery of possible losses.However, depending on how much you have accrued, and the alternative sources of income you can count on when you retire, you can instead direct a larger share of your equity to higher risk applications.That is, if the income from these investments accounts for less than a third of the income you get as a retiree, you can risk a little more. Still, it is not recommended that the portion applied in higher-risk assets.
Stocks with fixed income profile:
But if you can not avoid the risks, it is important that you know how to choose your applications well. If you decide to direct a portion of your equity, even if small, for equity investments, you may prefer companies that have an aggressive dividend policy.The reason for this is simple. In practice, these companies tend to pay a fixed percentage of their profits in dividends to shareholders and therefore, they resemble fixed income investments.
As in some cases, this percentage can reach up to 25% of the announced profit, the return on investment ends up being defined more by the dividends paid than by the valuation in the share price.To identify aggressive dividend policy firms, just check out some indicators like the pay-out dividend or the dividend yield of the stock. The first reflects the relationship between dividends paid and announced earnings of the company, and the second, the ratio between the dividends paid and the share price.
Preserve, without forgetting to accumulate:
Keeping your income growing during retirement is not an easy job because it means your investments are expected to rise above inflation.Although it is under control, when analyzed in a longer period it is not difficult to understand that ends up corroding its patrimony. At the current level of interest, the return on a fixed income is still quite high, and more than enough to cover inflation losses. However, in the long run, the expectation is that interest rates will fall, so that the return would no longer surpass inflation.