"It's an unfortunate truth that far too many people will have to navigate the potential shortfall of Social Security, which is expected to begin as early as 2032. With the trust fund that provides money for more than 70 million Americans coming up short, it's safe to say that other options will be necessary to make it through retirement."
"The simplest definition of an income ETF is that it is a publicly traded fund that holds, unsurprisingly, income-producing assets, such as dividend-earning stocks and/or bonds. There is definitely an opportunity to buy an income ETF that exclusively holds one or the other, while those looking for a little more diversity can find income ETFs that offer both stocks and bonds in one investment opportunity."
"If the time comes when Social Security benefits are cut, having a steady, rules-based cash stream on your side that doesn't require selling off shares in a down market is going to come in handy. Owning JEPI ( NYSE:JEPI) is going to help generate income by providing you with a single ETF that focuses on large-cap U.S. stocks and selling covered calls. This means that the checks are going to keep coming no matter what."
Social Security faces a potential shortfall as early as 2032, threatening benefits for more than 70 million Americans and requiring alternative retirement income sources. Income ETFs pool income-producing assets such as dividend-paying stocks and bonds to deliver cash flow and stability, with some ETFs combining both asset types for diversification. These funds can provide steady distributions without forcing investors to sell into market downturns. JEPI is an example that focuses on large-cap U.S. stocks while selling covered calls to generate consistent income, with holdings including Mastercard, Microsoft, NVIDIA, and Amazon.
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