Income Investing in Retirement

FUTURE PROOF: Your portfolio requirements change once you are retired - make sure that you take a suitably cautious stance when you are solely reliant on investment income

Emma Wall 9 October, 2015 | 12:30PM
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This article is part of Morningstar’s Guide to Income Investing. Whether you are looking grow your pension pot, or invest for retirement income, this week we have all the news, information and education you need.

 

Emma Wall: Income investing in retirement requires a more cautious stance in those still in the accumulation stage. Unlike when you're in full-time employment, you can't choose to supplement any market downturns with your wages. However, the old school thinking that those in retirement should be invested solely in bonds is not quite right either. We are living longer and therefore, the right retirement portfolio should include a blend of equities and bonds.

Where possible, make sure you can get professional advice. However, if you choose to self-invest, think about building a portfolio from low-risk equities, bonds and if you have money to burn and to take risks with, then go for emerging market or more risky strategies on the periphery of your portfolio. Remember to prioritize income and capital preservation.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Emma Wall  is former Senior International Editor for Morningstar