Retirement Yield Trap Or Treasure? 1 Stock To Sell, 1 To Buy

Jun. 12, 2025 9:15 AM ET, , , , , , 26 Comments
Roberts Berzins, CFA
10.22K Followers
(8min)

Summary

  • Retirement income investing and high-yields are not mutually exclusive.
  • In fact, I could see a case for building a prudent portfolio that consists of 7%+ yielding securities.
  • Yet, there is a merit of including lower yielding securities as well.
  • In this article, I share the main benefits that could stem from such picks.
  • I also discuss 2 securities from which one is a buy, and the other one should, in my view, be avoided.
Dices cubes to trader.

Sergey_P

When thinking about income-investing in the context of meeting retirement or financial independence objectives, the classical dilemma is choosing between high-yield with higher risk or lower risk with a less attractive yield.

As I have articulated in my previous articles, it

This article was written by

10.22K Followers
Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG investing certificate holder, has had an internship in Chicago board of trade (albeit, being resident and living in Latvia), and is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of STAG, SCHD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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