"It doesn't matter if you are someone looking to retire in the near future or someone who is just preparing mentally for what's to come when retirement does hit, but understanding how to best balance your portfolio for retirement income is something you should be thinking through right now."
"At the very top of this strategy list are ETFs, specifically dividend ETFs, two of which stand out right now for very different reasons. The first is built for high monthly income, while the second is designed to provide long-term stability and broad market coverage."
"Traditionally, retirement plans focused on a mix of bonds, stocks, drawdowns, and cash reserves, but this model is growing increasingly outdated. For many retirees, this is incredibly outdated, and cash is losing its purchasing power, and interest rates are making staying liquid in cash no longer as appealing as it was 24 months ago, when interest rates were high. Bonds, a major retirement staple for decades, have provided steady growth in a mixed portfolio but now offer lower yields. As far as drawdowns go, selling stocks in a volatile market can create unnecessary stress and reduce your overall spending, especially if a market downturn is truly bearish and is prolonged over many months or over a year."
Retirement planning requires prioritizing reliable income sources while maintaining exposure to market growth. Rising healthcare costs and potential Social Security shortfalls increase the need for dependable income. Cash holdings face purchasing-power erosion and lower appeal as interest-rate environments shift. Bonds now offer lower yields and selling equities during prolonged downturns can reduce spending capacity. A blended approach using dividend-focused ETFs can generate structured monthly payments and support long-term participation in markets. One example is the JPMorgan Equity Premium Income ETF (JEPI), which serves as a reliable option for income-focused retirees seeking consistent distributions.
Read at 24/7 Wall St.
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