Consider Income-Generating Investments

As you near retirement, focus on investments that can provide a steady income. This can include dividend-paying stocks, bonds, and real estate investment trusts (REITs). Dividend-paying stocks can provide a regular income stream and potential capital growth, while bonds can provide regular interest payments. REITs, which invest in income-generating real estate, can offer a steady income stream and diversification benefits.

Rebalance Your Portfolio

As you age, your risk tolerance typically decreases. It’s important to rebalance your portfolio to reflect this change, which might mean shifting towards more conservative investments. Rebalancing involves adjusting your portfolio to maintain your desired asset allocation. For example, if your portfolio has become too heavily weighted towards stocks due to strong stock market performance, you might sell some stocks and buy more bonds to rebalance your portfolio.