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.