Nearing Retirement? Here's an Investment Worth Looking At

It's a good idea to invest aggressively for retirement when that milestone is many years away. That generally means loading up on stocks -- if not individual stocks, then investments like S&P 500 index funds that track the broad market.

But as retirement starts getting closer, it's a good idea to get a little more conservative in your portfolio. Once your career wraps up, you may need to tap your portfolio to cover your living expenses in the absence of having a paycheck from work. And so at that point, you'll need to limit the extent to which you're invested in stocks, since stocks can be very volatile.

Now there are different investments you can look at as retirement nears, but generally speaking, bonds are good bet. But that doesn't mean you have to buy corporate bonds. You may, in fact, be better off adding municipal bonds to your portfolio. Here's why.

Continue reading

Source Fool.com