Trying to Retire Early? Distributing Ladder ETFs Could Help

Core Insights - The article discusses the challenges investors face when deciding when to claim Social Security benefits, emphasizing that delaying benefits until age 70 can significantly increase income, while claiming at age 62 can reduce benefits by approximately 30% [1] - It introduces distributing ladder ETFs, specifically the Northern Trust 2035 Tax-Exempt Distributing Ladder ETF (MUNB), as a potential solution for retirees to bridge the income gap until they can claim full Social Security benefits [1] Group 1: Social Security Benefits - Claiming Social Security benefits at age 62 can lower benefits by around 30% compared to waiting until age 70 [1] - About 40% of retirees receive more than half of their income from Social Security, creating a dilemma for those who cannot afford to wait until age 70 [1] Group 2: Distributing Ladder ETFs - MUNB is designed to provide consistent income through a portfolio of municipal bonds with staggered maturity dates, offering a smoother income path [1] - Investors can use MUNB to access potential tax-exempt income and cover everyday expenses until they can claim full Social Security benefits at age 70 [1] - Distributing ladder ETFs are positioned to help investors navigate various financial challenges, including inflation and long-term savings goals [1]