Buying individual stocks, whether they pay dividends or not, is better-suited for intermediate and advanced investors. If inflation rates exceed the interest rate earned on the account, your purchasing power could be diminished. Retirement portfolios at this stage should focus primarily on high-quality dividend-paying stocks and investment-grade bonds to produce both conservative growth and income. The bond fund will pay interest on a regular basis. Someone who is 10 years away from retirement could be as young as 45, if he or she is well prepared financially and eager to exit the workforce, or as old as 65 or 70 if not. Liquidity: Like other publicly traded stocks, REITs can be converted to cash whenever the stock market is open.