Retirement can either be a happy moment or a burden in one’s life. It’s not easy to embrace aging if you don’t have enough in your nest egg. Some retirees planned out their retirement well, but found out they need more income than expected.
If the average life expectancy in Canada is increasing to 80 years, you need to recalibrate your savings goal. With the retirement period stretching, it’s best to allocate an investment time frame of 25-30 years to have any hope of reaching $1 million.
For those who have less than the suggested investment window, you need reliable dividend-paying stocks. Enbridge (TSX: ENB)(NYSE: ENB) and American Hotel Income Properties (TSX: HOT.UN), or AHIP, can help you accelerate money growth to ensure you have enough to last the length of your retirement years.
Dream investment
When you’re preparing for or nearing retirement, the game plan is not to outlive your retirement savings. Enbridge is among the most dependable income-producing assets you’ll find on the TSX.
This dominant energy infrastructure company pays a hefty 6.15% dividend, which could potentially double an investment of $100,000 in fewer than 12 years. If you have an investment period of 25 years, the same amount could be worth $444.631.23.
Enbridge has increased its dividend over the last 24 years. The company can afford to do so and sustain the payouts for the next 10 decades because business expansion projects keep coming.
For the next five years, the annual growth estimate for this popular energy stock is 7.86%. While Enbridge is the largest in the industry, the company derives revenue and earnings on transporting rather than producing energy. Thus, it continues to dominate and remain at the top.
Generous giver
Don’t feel desolate if your retirement savings are not enough or if your investment window is fewer than 20 years. AHIP, a real estate investment trust (REIT) is a dividend monster. The stock pays a 12.58% dividend.
Assuming you have $20,000 savings, the annual dividend you will earn from the stock is $2,516, or a monthly stipend of $209.67. But if you have more capital to invest, the value of your investment could double in fewer than six years if AHIP can maintain the high yield.
This limited partnership was formed primarily to invest in hotel real estate properties in the United States. At the onset, the management team saw it fit to concentrate on a niche market, which is the secondary U.S. hotel industry.
AHIP is growing its portfolio of premium-branded, select-service hotels because of the diverse and stable demand in the larger secondary markets in America.
Be motivated
Now that you know the retirement reality, it should motivate you to start thinking about your path to a happy retirement. Life can be harsh during the sunset years if you don’t have financial sustenance or have outlived your retirement savings.
The moment you invest in Enbridge and AHIP, you are beginning your journey to employment freedom. You will also have the flexibility to time your retirement date or delay taking your pension income. None can compare to the benefits Enbridge and AHIP are offering to would-be retirees.
