20 Financial Considerations for Retirement
17. Stay with the Stock Market
Many times, soon-to-be retirees believe that they need to full divest themselves of all direct stock holdings by the time the retirement date arrives. Today, conventional wisdom shows that to continue to grow one’s money in retirement that placing a portion directly in stocks with monies left over from other investments is a great way to realize greater capital appreciation over time in retirement. This also helps to guard against inflation and maintain one’s ability to keep up with the financial requirements that will arise during retirement. Similar to other retirement investments, paying attention to the tax implications of dividend paying stocks and impact on capital gains needs to be analyzed as part of a person’s comprehensive investment plan.
