"There are millions of older Americans who collect a monthly paycheck from Social Security. And for many retirees, that's really the only guaranteed income they have access to. But if you're banking on Social Security as a guaranteed income source, you should know that the program may be creeping closer to sweeping benefit cuts. And while Social Security is not at risk of going away completely, the monthly benefits you may be banking on could end up being smaller than expected."
"Even if Social Security isn't forced to cut benefits, the reality is that you may not be able to live very comfortably on those monthly checks alone. If you earn an average wage before retirement, you can expect Social Security to replace about 40% of it, assuming benefit cuts don't happen. But a 60% pay cut could mean having to slash expenses in retirement and live very frugally."
"Like many other funds, JEPI invests in large-cap companies within the S&P 500. But JEPI also takes things a step further by selling call options against its holdings. In doing so, it's able to generate extra income, which it's then able to share with investors. Another nice thing about JEPI is that it pays investors monthly. So if you're looking for a way to add onto your Social Security checks and cover your ongoing expenses, it could be a good choice."
Millions of older Americans depend on monthly Social Security checks as their only guaranteed income. The program faces potential benefit cuts and may not fully replace pre-retirement wages; average-wage earners can expect about 40% income replacement. A 60% reduction would require significant spending cuts and frugal living. Reliable supplemental income is important. Income-focused ETFs can help supplement benefits. JEPI invests in large-cap S&P 500 companies and enhances income by selling call options, paying monthly and carrying moderate risk. SPHD targets consistent retirement income with lower volatility and higher dividends.
Read at 24/7 Wall St.
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