Saving for retirement is a huge financial responsibility, and it does not end when you collect the last paycheck from your employer. You will need to make sure your retirement investing plan meets your changing needs in the future.
The money you've saved will need to last a while. According to a September 24, 2012, report (PDF,) the National Center for Health Statistics reports that a 65-year-old man is expected to live another 17.3 years, to just over age 82. A 65-year-old woman is expected to live another 20.0 years, to age 85.
In retirement, your financial needs may change. Most retirees want their money to last throughout their lives, to keep pace with inflation, and to support their current spending needs.
Bond funds are one choice for many retirees because they are managed to generate regular income payments. This money can be used to help fund your retirement spending needs. Bonds generally have less risk than stocks, although they do have some risk.
Stock funds are designed for long-term capital appreciation. These are often used to help people save for retirement, and they may make sense for many people after retirement. That's because in the long run, stock funds are better at outperforming inflation than bond funds are. Because the prices of the things you buy are likely to go up while you are retired, you'll want your income to go up, too. Incorporating investments that have the potential for capital appreciation into your retirement investing can help your overall portfolio keep pace with inflation. Keep in mind; all types of investing involve risk, including potential for loss.
Because investing is a lifelong pursuit, you'll want to learn as much as you can so that you can adapt your investments to your changing life needs. Whether you are currently retired or just hope to be some day, your investments will need your care and attention.
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