This week, I’m talking about how the interest rate decisions by the Fed to raise or lower interest rates impact your retirement portfolio.

We’re in a period now where interest rates are dropping. The Fed just cut rates for the first time in over a decade and seems to intend to keep their stance on lower rates for the foreseeable future. 

Over the last few days, I’ve been talking about some common mistakes that investors make with their portfolio when rates drop by searching for yield in all the wrong places. Today, I want to share with you one reliable place to increase your income in retirement, even if rates drop. 

And that is increasing dividend stocks. When the focus of your retirement stock portfolio is on high quality companies who consistently increase their dividends, it gives you the opportunity to grow your portfolio income, even in the face of lower interest rates. 

Many high quality dividend companies have paid consistent and growing dividends for decades, providing a growth in income of about 7-10% a year. 

Dividend stocks are a fantastic option, not to replace your bonds, but to shift the focus of your stock portfolio, so you can replace and continue to give you the opportunity to grow your retirement income, even if rates drop. 

If you’re concerned about your portfolio and whether or not it’s positioned for the current interest rate environment we’re in, I’m happy to take a look at your portfolio for free. I’ll look at the current yield and income and give you some ideas for how you can boost your yield without sacrificing quality in this low-rate environment. If you’re interested, just send me an email at [email protected]. That’s [email protected].

That’s it for today. Thanks for listening. Tomorrow, we’re going to recap the week and I’m going to give you a little preview of next week’s theme. 

My name is Ashley Micciche and this is the One Minute Retirement Tip.

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