"A foremost concern for many retirees is for their retirement portfolios to be able to generate sufficient income to maintain their lifestyles during their golden years. Of course, risk tolerance is a major variable, and the compromise between risk tolerance and investment goals is the perpetual grey area facing most investors and portfolio managers. Portfolios that are designed for a long-term income requirement need to contain two (2) essential components:"
"Portfolios that are designed for a long-term income requirement need to contain two (2) essential components: a steady income stream base and a growth component to stay ahead of inflation and expand its business so its corporate viability can be sustained and increased. An ideal portfolio should have certain core securities that have solid track records for stability, steady growth, and consistent dividend income, ideally with a dividend growth component as well."
Retirees require portfolios that generate reliable income while preserving purchasing power. Long-term income portfolios need two essential parts: a steady income stream base and a growth component to stay ahead of inflation and support corporate viability. Ideal core holdings deliver stability, steady growth, and consistent dividends, preferably with dividend-growth characteristics. Portfolios should also include higher-growth exposure, such as technology or similarly aggressive sectors, and benefit if those holdings also provide dividends. Example tentpole selections span real estate, business finance, energy, resource mining, and a closed-end technology fund; dividends in examples are shown per $10,000 invested.
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