The adviser persuaded him to move money back into stocks and bonds — rather than holding so much in the bank. But he also helped Goldstein to focus on investments that would earn a steady income while giving him peace of mind. He has put about 40 percent of his money into dividend-paying stocks and 40 percent in individual bonds he intends to hold to maturity, and 20 percent in stock or bond mutual funds.
The values of the bonds and stocks might fluctuate in the short term, Goldstein was warned, but they should guarantee a steady income. And as long as he doesn’t need to sell the bonds early, Goldstein shouldn’t have to take any losses.
“I’m actually pondering the market’s future right now,” Goldstein said. “But as long as my stocks pay dividends, I can live with the ups and downs.”