Most Americans live in fear of outliving their retirement savings and having to turn to their kids for help. And hey, I don’t blame them. Apart from being scary, it’s humiliating, and no one wants to be a burden on their kids.
But even if you have a bountiful nest egg and modest spending habits, you can easily wreck your retirement by owning the wrong stocks. Lehman Brothers, Enron, Worldcom, General Motors Company (NYSE:GM). I could go on forever naming formerly “safe” retirement stocks that ended up blowing up. Investors who depended on these stocks to fund their retirements suddenly had holes in their portfolios that they had no way of filling.
And a company doesn’t necessarily have to go bankrupt to wreck your retirement.
Consider Kinder Morgan Inc (NYSE:KMI), a pipeline stock that was wildly popular with investors seeking yield. In late 2015, the company got overextended and had to cut its dividend by 75%. While the company is still alive and well — and actually growing — if you had needed that dividend to pay your retirement bills, you’d be up a creek without a paddle.
So today, we’re going to look at seven high-yield stocks that could potentially wreck your retirement.
All are common household names that are likely to be found in a retirement portfolio. And if you happen to own one or more of them, you might want to consider dumping them lest they wreck your retirement.