Fri Sep 06 2024, by Tyler Gardner

How to Invest $1 Million at Retirement

Here is exactly how I would invest $1 million when I retire in order to maintain a healthy cash inflow while still preserving the money that I've worked so hard to make.

I'm Tyler, I'm a former financial advisor and portfolio manager. Now I make financial content for free so that you don't have to pay for it.

1. Invest in Dividend Aristocrats

Number one, I would invest 40 to 50% of that million dollars into the dividend aristocrats. These are large, financially sound and well-established companies that have consistently increased their dividends over the last 25 years. I might invest in these through a fund like ProShares NOBL or Fidelity's KNGLX. This fund would give me broad exposure, it would reduce risk and still have the potential to appreciate over time.

2. Invest in High-Quality Bonds

Number two, I would invest 30 to 40% of that million dollars into high quality corporate or government bonds. This would give me consistent cash flow, less volatility than stocks, and the corporate bonds would offer me a higher return than the government bonds while still being considered relatively safe.

3. Invest in Real Estate Investment Trusts (REITs)

And number three, I would invest the remaining 10 to 20% in real estate investment trusts or REITs. This would give me long-term access to real estate exposure without having to become a landlord. It would provide me with consistent dividends that are usually higher than the aristocratic dividend stocks and it still could appreciate over time. It also provides me with additional diversification across asset classes.

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