For example, you might expect to live to a certain age, based on your health, lifestyle and family history. But you need to be prepared for greater longevity So you may  need to adjust the amount you withdraw from your investment portfolio each year.

Here’s another expectation: an annual inflation rate of three percent, the historical average. But if the unexpected happens, and inflation heats up during your retirement, you’ll need to consider investments that offer rising income.

By taking steps to deal with the unexpected, you can go a long way toward enjoying your retirement years.

Reinvesting Dividends Can Pay Off

As an investor, one of your goals should be to increase the number of shares you own in your investments. And you don’t need to have access to vast wealth to increase your share ownership — you just need to consistently reinvest your stock dividends.

Just how important are reinvested dividends to wealth accumulation, as compared to capital gains? Over the 135 year period from 1871 through 2003, owning stocks and reinvesting the dividends produced 97% of all stock market returns, with only 3% coming from capital gains, according to a major study done by Dr. Jeremy Siegel, one of the world’s leading researchers on stock market performance.

So, look for quality stocks that pay dividends. Keep in mind, though, that companies can reduce or discontinue dividends at any time and dividend reinvestment does not ensure a profit or protect against loss. But as long as they’re paying the dividends, help your own cause by reinvesting them.

Contact Wendell at Edward Jones www.edwardjones.com.