If You Have These ETFs, Social Security's Insolvency Probably Doesn't Matter

"It's no secret that Social Security has been lurching towards insolvency for several decades. Thanks to profligate spending by Congress, massive fraud luckily identified by DOGE, millions of undocumented migrants illegally stealing benefits, and a lack of any alternative plans from legislators has some economists projecting insolvency by 2034. Retirees who are living off their IRA or 401-K nest eggs are luckily able to treat Social Security benefits as supplemental to their investment income."

"While many investment vehicles, stocks, bonds and funds all vie in the marketplace for investors, two (2) ETFs that can provide high yields, diversity of asset class focus, and large institution gravitas may be worth consideration as portfolio additions. One is the bond oriented Fidelity Enhanced High Yield ETF (NYSE: FDHY). The other one tracks Dividend Aristocrat equities, which are large-cap stocks with a 25-year or longer unbreakable streak of annual dividend increases."

Social Security faces projected insolvency around 2034, creating potential benefit cuts that could significantly impact retirees dependent on those payments. Some retirees treat Social Security as supplemental income to IRA or 401(k) distributions, but portfolio yields may not cover shortfalls if benefits decrease. Two ETFs that can serve as income solutions are Fidelity Enhanced High Yield ETF (FDHY), an actively managed high-yield bond fund using an ICE BofA BB-B constrained benchmark and active credit selection to mitigate default risk, and FT Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG), which targets large-cap stocks with long histories of annual dividend increases. Both aim to provide higher yield and diversification for income-focused investors.

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