How to Use the Summer Lull to Get Your Retirement Income Strategy on Track
Written by Reuben Gregg Brewer for The Motley Fool -> Wall Street is a very frantic place most of the year, with many companies actually benefiting from keeping investors on edge. This summer, however, could be the right time for you to kick back and think strategically about y
Wall Street is a very frantic place most of the year, with many companies actually benefiting from keeping investors on edge.
This summer, however, could be the right time for you to kick back and think strategically about your retirement income.
If you watch CNBC for long enough, you will notice that even the smallest events on the dullest trading days can seem like they are really important. It is the most public example of how Wall Street writ large benefits from keeping investors' emotions elevated. The one time of year when there's a bit of a reprieve is summer. It is a good time for you to review your retirement income strategy. Here's what you should consider doing this summer.
Summer! The kids are out of school, and families are taking vacations. There aren't as many people working on Wall Street or trading. Perhaps you'll even have the pleasure of hosting the grandkids for a spell. Enjoy time with your family, but also recognize that this lull in the frenetic pace of life is an opportunity to slow down and think strategically about your investments.
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For example, if you are using your individual stock portfolio to generate investment income to supplement your Social Security checks , you may want to make some adjustments. If a stock you own has rocketed higher, your portfolio may no longer be as diversified as you think.
A rebalancing may be in order, such as shifting assets to an underperforming area like consumer staples, which is home to many reliable Dividend Kings . Companies like Procter & Gamble (NYSE: PG) , Coca-Cola (NYSE: KO) , and Hormel (NYSE: HRL) have increased their dividends annually for at least five decades, and their stocks offer attractive yields and valuations right now.
That said, you may also want to take a moment to consider the value of your time. The summer may remind you that spending time with family and friends is often much more enjoyable than spending it with spreadsheets and annual reports. If that is true for you, then getting your retirement income strategy back on track may mean buying dividend-focused exchange-traded funds (ETFs).
