Investing in Retirement
When you retire, you should expect to draw on your investments for as long as 30 years.
When you retire, you should expect to draw on your investments for as long as 30 years. That means you'll be caught among several investment objectives. Clearly, you cannot afford big losses. Yes, you need dividend and interest income. Most of all, you need growth to protect yourself against inflation.
To achieve these goals, fresh retirees should place at least 50% of their investments in stocks or stock funds. Consider taking a portion of what you have in bonds or in cash and buy an income annuity that pays a monthly benefit for the rest of your life. The older you are at the time of purchase, the larger the payout.
| Row 0 - Cell 0 | 1. Get a Checkup |
| Row 1 - Cell 0 | 2. Set Your Budget |
| Row 2 - Cell 0 | 3. Do a Dry Run |
| Row 3 - Cell 0 | 4. Choose Your Date |
| Row 4 - Cell 0 | 5. Consider an Annuity |
| Row 5 - Cell 0 | 6. Roll It Over |
| Row 6 - Cell 0 | Investing in Retirement |
| Row 7 - Cell 0 | Extreme Early Retirement |
Here are two portfolios suitable for investing in retirement. One is all index funds, which are designed to track a benchmark, such as Standard & Poor's 500-stock index. Index funds require less monitoring than other funds and have lower costs.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The second is made up of actively managed funds, which, if you choose well, should beat index funds by roughly one percentage point annually. But they require closer attention and are apt to fluctuate in value more than the indexes. All of these actively managed funds are in the Kiplinger 25, our selections of the best stock and bond funds you can buy with no sales charge. See the complete list and look for regular monthly updates in Kiplinger's magazine.
Index-fund portfolio
- 35% Fidelity Spartan Total Market Index (symbol FSTMX)
- 15% Fidelity Spartan International Index (FSIIX)
- 10% Vanguard REIT Index (VGSIX)
- 40% Vanguard Intermediate-Term Bond Index* (VBIIX)
*In a taxable account, substitute Fidelity Intermediate Municipal Income (FLTMX).
Actively managed fund portfolio
- 15% T. Rowe Price Growth Stock (PRGFX)
- 15% Dodge & Cox International Stock (DODFX)
- 10% Bridgeway Aggressive Investors 2 (BRAIX)
- 10% RS Value (RSVAX)
- 10% T. Rowe Price Real Estate (TRREX)
- 20% Harbor Bond Institutional* (HABDX)
- 10% Fidelity Floating Rate High Income (FFRHX)
- 10% Loomis Sayles Bond* (LSBRX)
*In a taxable account, substitute Fidelity Intermediate Municipal Income (FLTMX).
-
Stocks Chop as the Unemployment Rate Jumps: Stock Market TodayNovember job growth was stronger than expected, but sharp losses in October and a rising unemployment rate are worrying market participants.
-
Should You Renew Your CD?With rate cuts impacting earnings, we examine if now is a wise time to renew CDs.
-
7 Ways to Plan Now to Save on Medicare IRMAA Surcharges LaterUnderstand the critical two-year lookback period and why aggressive planning before you enroll in Medicare is the most effective way to minimize IRMAA.
-
457 Plan Contribution Limits for 2026Retirement plans There are higher 457 plan contribution limits in 2026. That's good news for state and local government employees.
-
Medicare Basics: 12 Things You Need to KnowMedicare There's Medicare Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare — and much more.
-
The Seven Worst Assets to Leave Your Kids or Grandkidsinheritance Leaving these assets to your loved ones may be more trouble than it’s worth. Here's how to avoid adding to their grief after you're gone.
-
SEP IRA Contribution Limits for 2026SEP IRA A good option for small business owners, SEP IRAs allow individual annual contributions of as much as $70,000 in 2025, and up to $72,000 in 2026.
-
Roth IRA Contribution Limits for 2026Roth IRAs Roth IRAs allow you to save for retirement with after-tax dollars while you're working, and then withdraw those contributions and earnings tax-free when you retire. Here's a look at 2026 limits and income-based phaseouts.
-
SIMPLE IRA Contribution Limits for 2026simple IRA For 2026, the SIMPLE IRA contribution limit rises to $17,000, with a $4,000 catch-up for those 50 and over, totaling $21,000.
-
457 Contribution Limits for 2024retirement plans State and local government workers can contribute more to their 457 plans in 2024 than in 2023.
-
Roth 401(k) Contribution Limits for 2026retirement plans The Roth 401(k) contribution limit for 2026 has increased, and workers who are 50 and older can save even more.
