by Gene Walden

If you’re retired, playing it safe with your investments is certainly a commendable strategy. But you still need balance. In other words, putting all of your money in safer, low-yielding investments may not be the best choice in the long term.

Inflation grows at about 10 percent every three years and you need a portfolio that seeks to keep up with or exceed inflation if you want to maintain your standard of living. That’s why it’s important to include some investments that offer greater potential for growth along with your fixed income investments. You should consider keeping a portion of your assets in a diversified portfolio of blue chip stocks, since stocks have historically provided greater long-term returns than fixed income investments. Stocks or funds that pay dividends—and typically raise those dividends each year—can help you stay ahead of inflation.

Americans are living longer after they retire, and they need an investment portfolio with the potential to keep their money growing throughout their retirement years. Talk to your financial advisor to see if your portfolio is properly positioned for the long term.