Fri Jul 26 2024, by Tyler Gardner

Investment Strategies for Retirement in Your 50s or 60s

Here is exactly how I would invest $2 million if I were in my 50s or 60s. I'm Tyler, a former financial advisor and portfolio manager, and now I create financial content for free so that you don't have to pay for it.

1. Determine Annual Living Expenses

First, I would start by working backwards and figure out exactly what I wanted to live on each year. We can usually be safe by taking about 4% for annual spending without ever having to eat away at the principal. I should be okay so long as I'm comfortable living off $80,000 a year, complemented by the national average of $33,000 from Social Security.

2. Allocate Investments Wisely

Next, I would invest $1 million in a low-cost growth fund like Invesco's QQQ. Additionally, I would invest $750,000 into a low-cost dividend fund like Fidelity's FDVV. Finally, I would allocate the remaining $250,000 into a couple of real estate investment trusts (REITs) like Crown Castle, Boston Properties, or Prologis.

3. Minimize Fees and Maximize Growth

By investing this way, I would be paying virtually nothing in fees. I would take advantage of about 7% to 10% growth for QQQ, 3% to 4% annual dividend yields from Fidelity's FDVV, and about 5% to 6% annual distribution from my REITs. This strategy would leave me with over $100,000 a year to live on without ever having to touch the principal.

If any of this is helpful, like and follow, and I’ll keep trying to get you one step closer to where you need to be.

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