Financial advisers generally recommend that retirees invest some portion of their money in stocks and/or growth mutual funds for the remainder of their lifetime. In other words, they suggest that retired investors never stop investing some money for growth. The reason is quite simple. People are living longer than ever, and their money has to last as long as they do. In order to maintain purchasing power throughout a potential three or four decades of retirement, invested assets need to outpace the rate of inflation. Historical investment data tell us that the best way to do this is to be invested in common stocks.
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