3 Stocks for a Better Retirement

Retirement planning should include a strategically allocated stock portfolio. Young investors who save into a 401(k) or IRA accumulate stocks for the growth they can provide over the long term. Conversely, retirees generally prioritize income investments with dividends helping to replace earned income from working.

Retirees should be careful to have a balanced investment approach. Too much volatility can destroy a retirement plan, but an overly conservative approach can hamper lifestyle later in retirement if a portfolio fails to keep up with inflation or rising costs for healthcare. Investors should therefore make sure they have the proper ratio of stocks and bonds, and they should make sure that their equity investments are allocated to the right types of companies. Retirement stock portfolios should be well diversified, and they should have exposure to companies with stable dividends, strong yields, operational stability, and relatively low volatility.

The following three stocks exhibit all the important characteristics that investors should favor in retirement.

Source Fool.com