A Case for Direct Indexing Using Rising Dividend Stocks

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Consumers who are near or in retirement are sailing into a perfect storm in term terms of navigating their investments for current income and lifetime portfolio sustainability.

Soaring inflation paired with sharp declines in the stock and bond markets means that no major asset class is protected, leaving consumer nest eggs exposed to unprecedented sequence-of-returns risk.

While well-conceived retirement spending plans should enable most portfolios to withstand even a severe portfolio shock early in retirement, back-to-back severe downturns, such as the 2000-2002 and 2007-2009 bear markets in stocks, could lay waste to even the best laid plans. [See my previous article, Be Afraid, Very Afraid of Retiring in the 2020s].