Reuters - Video


Money Clip

The do-it-yourself pension plan – Money Clip

Thursday, Apr 11, 2013 - 03:21

Fewer companies offer workers pensions but you still need income after retirement. Here are four ways to turn your portfolio into a pension plan.

▲ Hide Transcript

View Transcript

The company. It continues to fly and Social Security expect a massive short -- by the year when he poured back. But do you need a stream of income in retirement. May be time to start thinking about it doing yourself pension. We look at the example of the sixty year old couple heading toward retirement they've got 5000 dollars in assets to. We look for advisors. Here at their strategies. Number one. On my spot matters referred it fixed income products with different maturities. Overall you're looking even mix of roughly 36%. In municipal bonds. 34% and other funds that range from an investment grade up floating rate securities. And when -- percent of the portfolio in stocks. A lot -- Agassi 2% in real estate investment trust and 5% in cash. Strategy is about buying actual bond. Not on funds if interest rates rise bond funds can get hammered. If you buying individual fine you'll end up with your principal along with any interest you recruit. But there are risks there's the risk of default as well as the risk of inflation. Number two if it campaigns stocks this schedule calls for 60% of the proponents stuff. Half of them -- dividend oriented along with 20% in bonds a mix of high -- and mortgage backed. And 20% of portfolio in alternatives like master limited partnerships. And real estate investment trusts this strategy is about the quality of the companies not just their Pena. If you don't -- -- needs one on dividends companies like Procter & Gamble and Johnson Johnson. Which -- definitely increase in dividends year after. Number three. A new. Annuities earnings aren't product that pay you income stream. For the light of -- annuity or for the rest of your life depending on the track so here's the expert about. Put 50% in an immediate -- equity 20% in fixing com which is a mix of short and mid term bonds along with tips. 20% in a mix of US and international stocks. And 10% in alternatives like reits and commodities. He annuity along with Social Security should cover your basic expenses. Letting you take some rest with the rest of your portfolio. That thing with the new needs now is that the investment is gone once you're down. But as long as you live you'll get paid finally there's that PID. Stress. Yankees fans for dividends from stocks. Interests from bonds and distributions. From alternative sources. Put 30% equities dividend and growth oriented stops. 45%. In fixed income which is a mix of corporate and government -- And 25%. In alternatives like MLPs and this person I approach your finger in every pot. Which we'll kick some come back here. If your employer isn't going to build a pension for you you're just going to have to do it yourself. Yeah.

The do-it-yourself pension plan – Money Clip

Thursday, Apr 11, 2013 - 03:21

Top News »

The Exchange »

Moving Pictures »