I often meet families who created an investment portfolio many, many years ago. And while it seems to have performed great during their pre-retirement years, they are sometimes surprised to learn that those same investments may not serve them well in Retirement.
Rolling over your funds for retirement presents a number of opportunities for error. There are plenty of government and IRS regulations to consider, and running afoul of any of them can be expensive in terms of penalties, fees, and even access to your savings.
Buy low, sell high. That’s how you make money in the stock market, right? Like most things in life, this simple wisdom gets much more complicated once your boots hit the ground.
Do you remember the last time you were in your car and a song came on the radio that you didn’t like? And I don’t mean a song that was okay, but not one of your favorites. I’m talking about a song you really didn’t like. Maybe it was the song that was playing when the love of your life broke up with you or after your dog died.
Have you ever lost your keys? It’s incredibly frustrating, isn’t it?
It seems impossible. How can they not be right where you left them?
The good news about losing your keys is that you are going to discover they’re lost pretty quickly. After all, without them, you can’t drive your car or get into your house.
Interest rates are low and the stock market is high. What is an investor to do? Isn't there a way to get higher yields with less risk?
Well, the answer could be yes if you are willing to look at preferred stock duration.
What Is a Preferred Stock?
Preferred stocks are a hybrid security. This means they have the characteristics of both bonds and stocks.
Like bonds, they pay dividends. This makes them attractive to an investor looking for income.
Like stocks, preferred stocks can appreciate in value.