As more investors approach retirement, the bullish or bearish effect may no longer matter. These investors seek innovative and balanced earnings strategies that try not to expose them to market fluctuations or downturns.
They wanted to find an alternative way that would instill a level of confidence and lessen the fear of surviving their spendable income. It is now easier to hire professionals for reliable portfolio review via https://www.edwardjones.com/us-en/financial-advisor/tyler-simonds.
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The traditional solution to the retirement income dilemma is to shift portfolio assets from stocks to a combination of bonds, annuities, and/or dividend stocks. However, many investors are increasingly skeptical about whether traditional strategies can provide a decent income in the retirement years.
At the same time, however, few are willing to expose their portfolios to risky investments that can provide the returns needed to meet their income needs. In recent years, many investors have turned to ETFs to develop new investment strategies that will add to their income.
However, the number of income-generating ETFs is limited and it is too early to determine whether ETFs are correlated with other income alternatives. In addition, with the current economic developments, some investors are wary of making long-term investment commitments that have not been proven to provide the expected returns.
A closer look at traditional income strategies:- Interest rates have been historically low. In addition, inflation and taxes can further reduce the payment of already insignificant income. As a result, government bonds and other "safe" investments are likely to yield negative returns for years to come.