"A lot of people assume that once they retire, they'll be able to manage their expenses on Social Security alone. But you may be surprised by how little those benefits amount to. For context, the average monthly Social Security benefit today is $2,071. If you have extremely low monthly expenses, you may be able to get away with living on a retirement check that small."
"It includes companies across a range of industries, including the financial industry, technology, and healthcare, and it focuses on businesses with consistent dividend payouts. What makes VYM a good option for retirees is that the fund is loaded with large companies, many of which have fairly stable earnings (notwithstanding broad market downturns and events). And because VYM is so diversified within itself, it's a fairly moderate-risk fund. Plus, as is the case with many Vanguard funds, VYM has a low expense ratio."
Social Security average monthly benefit of $2,071 often fails to cover typical retirement expenses. Relying solely on Social Security may leave little room for discretionary spending. Investors still working can build supplemental income by buying exchange-traded funds (ETFs) that pay dividends. The Vanguard High Dividend Yield ETF (VYM) holds hundreds of U.S. stocks with above-average yields, large-cap diversification, stable earnings, moderate risk, and a low expense ratio. The Schwab U.S. Dividend Equity ETF (SCHD) tracks the Dow Jones U.S. Dividend 100 Index and emphasizes companies with strong financials, screening for factors such as profitability.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]