When it comes to investing for income in retirement, there are several ways to do it. Just to name a few of the major income investments, you could buy:
- Bonds -- Steady income payments, but won't help you keep up with inflation
- Dividend stocks -- Potential for growth as well as income, but with added risk
- Annuities -- Steady income for life, but fees can be high
- CDs -- Safest choice, but lowest returns
While any of these will create a stream of income, each one has its own set of pros and cons, and some may be better choices for your portfolio than others. With that in mind, here's a quick guide to help you decide which are best for your income requirements and risk tolerance.
Matthew Frankel has no position in any stocks mentioned. The Motley Fool has the following options: long January 2016 $37 calls on, short January 2016 $43 calls on, and short January 2016 $37 puts on Coca-Cola. The Motley Fool recommends Coca-Cola, Johnson & Johnson, and Procter & Gamble. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.