Strange, but true: the elderly are afraid of death less than the exhaustion of retirement money.
In addition, pensioners who have built an egg from a nest have valid justifications that need to be concerned, as traditional ways to plan retirement may mean that income can no longer cover costs. Some pensioners now use their principal to bring out a decent life, pressed for a time between reducing investment balances and longer life expectancy.
For many years, bonds or other fixed income assets could lead to the yield required to provide solid retirement income. However, these yields have decreased over time: the 10-year treasure percentages of the treasure in the late 1990s are about 6.50%, but today this percentage is something of the past, with a subtle likelihood of returning to the foreseeable future.
The effect of this decline in the rates is significant: over 20 years the change in yield for investment of $ 1 million in 10-year treasures is over $ 1 million.
Today’s pensioners are hit strongly by reduced bond yield-and the picture of social security is also not too pink. Currently and in the near future, social security benefits are still being paid, but it is estimated that social security funds will be exhausted immediately after 2035.
Unfortunately, it seems that the two traditional sources of retirement income and social security-they may not be able to respond adequately to the needs of current and future retirees. But what if there is another option that can provide a stable, reliable source of retirement income?
As we can see, stocks to pay dividends from usually low -risk companies are a brilliant way to create stable and solid income streams to replace low risk, low yield and fixed income alternatives.
Look for shares that have paid stable, increasing dividends for years (or decades) and have not reduced their dividends even during recessions.
One way to identify appropriate candidates is to look for shares with an average dividend yield of 3%and positive average annual dividend growth. Many shares increase dividends over time, helping to compensate for the effects of inflation.
Here are three dividends payment that pensioners have to consider about their nest egg portfolio.
Artesian resources (Artna) Currently, he is firing a dividend of $ 0.31 per share, with a dividend yield of 3.65%. This is compared to the extraction of the communal industry by a 2.55% water supply and the S&P 500 yield of 1.51%. The annual growth of the company’s dividends in the last year was 4.03%. Check the history of artesian resources dividend here >>>