One of the most common groups of questions that I get revolves around what would be good to hold in an income-focused portfolio for someone who’s retired or about to retire. And it’s something I think about constantly as I prepare for my own future later on down the road. So in this video, I’m going to discuss and give my own opinions as to what I think retired income investors should prioritize when constructing their portfolios and the types of investments that I would personally hold if I either didn’t want to work or was no longer able to work. One of the biggest issues when attempting to answer what are the best holdings for retirement revolves around the size of someone's portfolio.
Someone who can only save up $500,000 for retirement is going to have a different portfolio than someone who’s saved up $5 million. If you only have $500,000 and you want to completely live off dividends, you’ll have to invest in higher-yielding holdings. If, on the other hand, you’re lucky and have several millions saved up, you can invest in a stock yielding 2 or 3% and still live comfortably. So note that when I give my own opinion as to what I’d suggest retirees hold, I’m going to assume you don’t have more than a million saved up. Although I already dedicate my portfolio to higher-yielding investments, many of them are still dedicated to growth.
