Ask Terry Questions Best Dividend Stocks

Best Dividend Stocks

By Terry Savage on May 07, 2024 | Financial Planning / Retirement

I am 64 years old, I plan to retire in 1-2 years and I have about $1M in my work 401K and Bank IRA combined. What investment combination would earn me about 4-5% annually after fees? I was thinking a mix of 25% in stocks with high dividends, 25% in long term US treasury Bonds, 25% in tax free municipal bonds and 25% in S&P500 fund. Any specific stocks, bond recommendations would be greatly appreciated. Thank You! I enjoy your insights on WGN 720 radio.

Terry Says

This question is why you need a fiduciary financial planner.  It cannot be answered on the basis you present.  How much risk of loss are you willing to take?  How much certainty do you need about the income?  What’s your tax situation?  (No need for tax-free municipals inside a retirement account, because all withdrawals are taxed as ordinary income!)

And when do you plan to retire?  Can’t roll your 40l(k) plan before retirement.  And what choices do you have inside your 40l(k) to fulfill the goals?  Most don’t offer long term T-bonds or even a dividend-heavy stock fund.

Please seek help from a FEE-ONLY, FIDUCIARY planner. Find one here: Pam Krueger Wealthramp – Terry Savage

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