Could you use an extra $500 in monthly retirement income? Of course you could. Even if you already feel good about the progress of your long-term savings, diversifying your retirement plan with dividend-paying funds adds another layer of security for your senior years. Plus, it’s not terribly hard to do. Just follow these four easy steps and you’re on your way to a nice stream of dividend income in retirement.
Step one is choosing a dividend fund. A fund is easier to manage than a handpicked portfolio of stocks. You do lose a little bit of your investment to fund fees, but that expense pays for a diversified portfolio that’s likely less risky than one you built yourself.