Why ESG Stocks Are Perfect for Retirement Portfolios
When positioning your retirement fund for the long-term horizon, perhaps three or four decades down the road, be sure to save room in your portfolio for environmental, social, and governance (ESG) stocks. Sure, these companies may involve novel strategies and may not be as well tested as other industries, but they are based on growing trends that are becoming more mainstream with each passing day. Taking a long approach based on companies that will drive the way the world is changing is a winning strategy in my opinion.
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These days, future retirees need to be a little more aggressive in their planning. If you retire at 65, that could still result in a 20-year to 30-year retirement period that requires a lot of money to sustain. The good news is that in the long term, equities and markets generally appreciate. For instance, the S&P 500 Index has an average annual return of roughly 8% between 1957 and 2018. So, you want a portfolio based on industries that will still be around and relevant in the future, as well as industries that can grow.
Source Fool.com
