I’m Using These 2 ETFs Instead of Counting On Social Security, And You Should Too

Economic Environment - Retirees have faced challenges due to double-digit inflation, which has forced many to liquidate growth assets for cash to meet basic needs [1] - The economic recovery under the Trump administration has significantly reduced inflation, with the government working to eliminate waste and improve the economic climate [3] Investment Opportunities - Two ETFs, Alerian MLP ETF (AMLP) and Vanguard International High Dividend Yield Index Fund ETF Shares (VYMI), are highlighted as potential portfolio cornerstones for retirees, offering better returns than relying solely on Social Security [2] - AMLP provides an 8.24% yield from midstream MLPs that are required to distribute 90% of profits to shareholders [6] - VYMI has returned 33.78% year-to-date while avoiding exposure to AI through international dividend stocks [6] Market Trends - Anticipated Federal Reserve rate cuts may lead to lower bond yields and increased prices for interest-rate based income investments [4][6] - The S&P 500's performance is heavily influenced by AI-focused stocks, raising concerns about a potential correction if an AI bubble exists [4] Industry Insights - The midstream sector is crucial for the transportation of hydrocarbon products, functioning like the circulatory system of the energy industry [9] - Publicly traded midstream companies, often structured as Master Limited Partnerships (MLPs), are mandated to return 90% of their profits to shareholders [9]