15 Ugly Truths About Retirement

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But You Can Still Invest Too Conservatively

Steer clear of high-potential investments like stocks, and you could end up making a mistake in retirement and outspending your lifestyle, said Joseph Carbone, a certified financial planner and founder of Focus Planning Group in Bayport, N.Y.

“Retirees should be looking to invest in total return-type strategies that focus on stock appreciation — more specifically dividend-producing stocks — and good-quality bonds that don’t have long maturities,” said Carbone.

“Many of my clients who are in or approaching retirement have a 60 percent stock and 40 percent bond allocation, with an emphasis on dividend-producing stocks and bonds that have a duration of less than six years.”