Each week on my show The Income Generation, we cover topics that are important to those who are retired or nearing retirement. Since every person’s situation is different, viewers often have questions. That’s why The Retirement Income Store’s social media pages include an Ask Dave forum – which I’m glad to be able to share with you.
Today, Armond from Wisconsin asks:
“I was wondering: is there a way to sort of just ‘dip your toes’ in investing for income to see if it’s right for you?”
Well, Armond, of course you can. You don’t have to do anything with all of your money. You can start by investing just a little bit of your money for income. Now, if you are within 10 years of retirement, dipping your toes in might make sense. However, if you are only 2-3 years from retirement, you better dip your toes, your feet, and maybe your calves in. That’s because as you near retirement, just dipping your toes into investing for income could leave you stuck in a market downdraft.
So, yes, you can do it but the extent to which you do it will depend on how far you are from retirement. If you are 10 years away from retirement, high-dividend paying stocks can be a good way to dip your toes in investing for income without having to sacrifice potential growth in the stock market. Thanks for your question, Armond.
If you have a retirement related question you would like answered, be sure to email it to me at: AskDave@TheRetirementIncomeStore.com.