With inflation affecting savings like never before, hitting a seven-figure portfolio isn’t what it used to be. Experts suggest that baby boomers should save approximately $900,000 for retirement to maintain their pre-retirement lifestyle. But if someone is eyeing lavish vacations or other bigger expenses, well, they might want to aim for over a million.
- Google’s cloud division saw a remarkable 35% growth last quarter.
- Fortis is rolling out a hefty $28.8 billion capital investment plan for the next five years.
- Coca-Cola aims to pull in about $12 billion in cash flow over the coming year.
- If retirement is on your mind, or if you know someone who’s thinking about it, there are three questions that could help many realize they can retire sooner than they thought.
For those with or aspiring to a seven-figure portfolio, here are three stocks to consider that could help counter the impact of inflation.
The stock I feel quite optimistic about right now is Alphabet (NASDAQ:GOOG). For long-term investors seeking significant capital growth, holding Alphabet can really help offset rising prices over time. I believe its growth outlook remains strong, and recent news hints that growth might ramp up even more soon.
They’re heavily investing in AI with their Gemini model, which positions them well in the large language model space. Yet, this technology also presents a challenge to their core search business, something not many other technologies have managed to do in recent history. So, maintaining their edge in AI is crucial for them.
Still, the performance of their cloud division—growing 35% year-over-year this quarter—seems to be an important selling point for investors. Plus, with Warren Buffett’s Berkshire Hathaway now investing significantly in Alphabet, it solidifies Alphabet’s status as a noteworthy growth stock at a reasonable price.
When it comes to stability and strong long-term returns, Fortis (NYSE:FTS) stands out with a solid reputation. As a Canadian utility, it’s underappreciated within its sector. With a dividend yield of 3.5% and an impressive streak of 51 years of dividend increases, there’s a compelling argument for Fortis as a dependable choice. With a new $28.8 billion spending plan set to boost cash flow, they seem well-prepared to continue providing reliable dividends.
I also think the utility sector is well-positioned to deal with the rising power demands driven by the AI revolution. Fortis could be a solid option if you’re looking for something under the radar.
Speaking of well-known brands, Coca-Cola (NYSE:KO) is undoubtedly among the top recognizables. Buffett has always backed Coca-Cola, and it continues to generate robust returns, somewhat like Fortis does.
However, Coca-Cola needs to keep innovating to retain its market edge in this competitive, high-margin sector. Given inflation and changing consumer behaviors, the key question is how much pricing power they truly have. My guess? Quite a bit, but I’m uncertain about how high they can push prices without affecting sales. As long as the management stays efficient, reaching their $12 billion cash flow target in the next year could be within reach. If that happens, many might regret not jumping on KO stock sooner.
Many think retirement is simply about selecting the right stocks or ETFs, but that’s actually a misconception. Great investments can become burdens in retirement, and it’s all about the difference between accumulating wealth and spending it. This shift has prompted many to rethink their retirement plans.
On a positive note, several Americans are finding that by addressing three simple questions, they can realistically consider retiring earlier than they expected. If retirement is on your mind or someone else’s, take five minutes to reflect on it.
