How to Invest $2 Million as a Conservative Investor in Your 50s or 60s

If I were in my 50s or 60s and had $2 million to invest while being a relatively conservative investor but still wanted to take advantage of some potential for growth, here’s how I would allocate my investments. I'm Tyler, a former financial advisor and portfolio manager, and I create financial content for free to help guide you in your investing journey.

1. Invest in Dividend Growth Stocks

I would invest 40% to 50% of my assets into dividend growth stocks. I would probably do this through a fund to diversify my holdings. Not only would I receive annual dividends to provide cash flow, but I would focus on companies that consistently increase their dividends over time. This strategy provides both income and potential for capital appreciation.

2. Diversify with Bonds

I might invest 20% to 30% of my assets in U.S. bonds and international bonds. Diversifying my bond holdings would allow access to both emerging and developed market debt, potentially yielding a higher return than U.S. debt. This approach would help mitigate domestic interest rate and currency risk, although it would introduce some political risk and foreign currency risk.

3. Focus on Utilities or Infrastructure Funds

Lastly, I might invest the remaining 20% to 30% in utility or infrastructure funds. These assets provide essential services that often retain their value through various economic cycles. They typically offer lower volatility, with continued potential for capital appreciation.

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