"Turning 70 used to be the finish line for portfolio building, but with life expectancy stretching toward the eighties and healthcare inflation outpacing the CPI, the real race is making sure the checks outlive you rather than the other way around. The sweet spot for soon-to-be retirees is no longer the 2% yield. The economy is volatile, and trade policies are being changed rapidly. And there's a risk that the next administration will undo these changes and spark a decades-long"
"The ETF does this by combining a Nasdaq-100 equity sleeve and a covered-call overlay that sells one-month, slightly out-of-the-money call options on the Nasdaq-100 Index. The premiums collected from the calls are paid out each month, together with any ordinary dividends the stocks happen to deliver. This creates the large distribution that the fund is known for. JEPQ currently yields 9.38%"
High-yield dividend ETFs can bolster retirement income against inflation waves and market volatility. Covered-call income ETFs layer option premiums over equity exposure to generate larger monthly distributions. JEPQ pairs Nasdaq-100 holdings with a one-month, slightly out-of-the-money call-selling overlay, paying collected premiums plus ordinary dividends as monthly cash distributions. JEPQ yields 9.38% with an expense ratio of 0.35%, making it a relatively low-cost, ultra-high-yield option. Elevated retail options activity keeps premiums high, enhancing yields for covered-call ETFs. Increasing life expectancy and healthcare inflation make higher-yield income vehicles attractive to help retirement checks last longer.
Read at 24/7 Wall St.
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