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Monthly Dividend Checks
Retirees often have to look at their investments very differently than those who are in their 20s or 30s. When starting out an investor will most likely be looking for a growth fund. In retirement, investors begin looking for an income generating fund. Many of those funds only pay out quarterly, twice a year, or once a year. That doesn’t really help pay the monthly bills, though!
According to Kiplinger’s Jeffrey Kosnett, you can expect a steady, monthly cash flow from these three funds: Loomis Sayles Global Bond Fund, Loomis Sayles Bond Fund, and Realty Income Corp.
There are other forms of monthly income, such as oil and gas trusts, that could be very beneficial to a retiree’s portfolio. Obviously, the more money you want every month, the more risk you’ll have to take. These are still investments that could potentially lose value, so do your research before buying in.
Check out Kosnett’s article for a more in-depth look at sample portfolios earning a monthly income, and their risk factors. Be sure to check with your financial advisor before making any decisions!
Share your thoughts. Does Kosnett’s approach make sense to you, especially in today’s economy?