Why You Shouldn’t Abandon ETFs in Retirement

Reporter: Rebecca Lake

Publication: US News


Deadline: Apr 6, 2017 11:00 pm

ETFs offer investors numerous advantages but many investors assume that once you retire, you’re better off trading them in for more conservative investments. This story will explore why investors should consider hanging on to ETFs once they retire. 1. What are the primary benefits of keeping ETFs in your portfolio once you’ve retired? Lower costs Diversification? Tax efficiency? 2. In general terms, how does the volatility of ETFs compare to other types of investments a retiree may gravitate towards? Why is it important for retirees to understand the risk profile of a specific ETF? 3. Is there any particular type of ETF that’s better suited for a retiree’s portfolio? For example, should retirees be looking for ETFs that offer high-yield income, big annual dividends, long-term growth, low costs, etc? 4. Are there any specific types of ETFs that are best avoided in retirement? 5. How important is the cost factor to retirees when evaluating ETFs?

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