Once you retire, the way you interact with your money changes. For example, instead of earning money through work to cover your costs and invest a bit, you rely on your investments to provide the funds to cover those costs. That shift in your reality should drive a change in your investing strategy.
Dividend-paying stocks can play a role in getting you that money, but they are not the solution all by themselves. After all, dividends are not guaranteed payments, and when a company cuts its dividend, its stock price can drop as well. Still, the benefits they provide are often worth the risks, which can offer a compelling case for retirees to own them. With that in mind, here are five reasons to invest in dividend-paying stocks in retirement.
Catch up on your retirement savings with these three strategies
How automatic enrollment in 401(k)s could reshape savings for retirement
Learn about the tax benefits of saving for retirement
Is this the magic retirement savings number?
If you are planning to retire soon, it may be time to make a “happy plan”