Money & Investing - Banks.com

It’s never too early to start preparing for retirement. And even if you think it’s a bit late, you should still do what you can. (There are “catch up” contribution options for IRAs and 401ks that allow you to make extra contributions on top of what is normally the limit.) Depending on your needs, Stock Trading To Go has 10 suggestions for individual equities that might make a good addition to your investment portfolio:

1. GROWTH AND INCOME: Abbott Labs (ABT), Dividend Yield: 3.6%
2. GROWTH AND INCOME: McDonald’s (MCD), Dividend Yield: 3.5%
3. BARGAIN GROWTH: Accenture (ACN), Earnings Growth: 12%
4. BARGAIN GROWTH: Cisco Systems (CSCO), Earnings Growth: 11%
5. DEEP VALUE: Baker Hughes (BHI), Dividend yield: 0.6%
6. DEEP VALUE: Valmont (WMI), Dividend yield: 0.7%
7. SMALL CAP: NutriSystem (NTRI), Return on Assets: 29%
8. SMALL CAP: Aaon (AAON), Return on Assets: 20%
9. FOREIGN VALUE: Petrobras (PBR), Dividend yield: 0.6%
10. FOREIGN VALUE: Unilever (UL), Dividend yield: 3.9%

It’s nice to have dividend stocks in your retirement portfolio, and many of these stocks offer those returns. I would be wary of the stocks with high returns, though. These stocks are often volatile, and high earnings can suddenly turn into something less than that desirable over the long haul.

Index funds for your retirement portfolio

Instead of trying to pick individual stocks, I like the idea of index funds. Solid stock choices may yield higher returns, but in the long haul, index funds often yield more than adequate results — even if they aren’t as flashy. Index funds follow a particular index (stock, bond, commodity, etc.). Since you gain on the performance of the index overall, you are almost certain to enjoy a return on your investment. With individual stocks, that outcome is far less certain.

In the end, though, you need to do what is best for your particular situation. However, no matter your situation, preparing a retirement investment portfolio is vital for your future financial security.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.