Core Viewpoint - The iShares iBonds Dec 2026 Term Corporate ETF (IBDR) offers a unique investment opportunity for retirees with a 4.12% yield and a target maturity structure that distinguishes it from traditional bond ETFs, as it is designed to liquidate in December 2026, returning principal to investors at maturity [1]. Group 1: Income Generation - IBDR generates monthly distributions from coupon payments on a portfolio of investment-grade corporate bonds, all maturing between January and December 2026, allowing for a diversified investment through a single ticker while mimicking individual bond ownership [2]. - The fund's income stream carries minimal interest rate risk due to its approaching maturity, with a credit quality breakdown of 45% A-rated, 41% BBB-rated, and 12% AA-rated bonds, all classified as investment-grade [3][4]. Group 2: Distribution Stability - IBDR has maintained consistent monthly payments averaging $0.084 per share throughout 2025, equating to approximately $1.01 annually, which supports a conservative income stream for retirees [3]. - The fund's price volatility over five years has been low, with shares trading within a narrow range of $23.01 to $24.23, reflecting a total variation of just 5.3%, which is significant for retirees concerned about principal erosion [5]. Group 3: Fund Structure and Alternatives - Upon liquidation in December 2026, investors will receive their principal back, but they will need to seek new investment options; the fund has a competitive expense ratio of 0.10%, costing $10 annually per $10,000 invested, with a low portfolio turnover of 9% to minimize taxable events [6]. - For those seeking a similar investment strategy with a longer duration, the iShares iBonds Dec 2027 Term Corporate ETF (IBDS) offers a 4.01% yield and mirrors IBDR's structure, allowing retirees to extend their bond ladder strategy [7][8].

Retirees facing low bond yields have turned to high-dividend equity strategies, but not all approaches deliver the stability fixed-income investors need. The challenge is finding yield that won't disappear when markets turn. What SPYD Actually Delivers SPDR Portfolio S&P 500 High Dividend ETF (NYSEARCA:SPYD) holds the 80 highest-yielding S&P 500 stocks, equally weighted, delivering a 4.7% yield with a 0.07% expense ratio. For a retiree with $200,000 invested, that's roughly $9,400 in annual income at minima ...

Core Points - The article discusses the optimal age to claim Social Security benefits, emphasizing that the timing of claims can significantly impact retirement income [1] - It highlights that claiming benefits at age 62, while popular, results in a permanent reduction in monthly benefits [2][4] Age 62 - Claiming Social Security at age 62 leads to a 30% reduction in monthly benefits compared to the full retirement age (FRA) of 67, and a 44% reduction compared to claiming at age 70 [3] - Early claims increase longevity risk, resulting in lower lifetime benefits for individuals who live longer, and can negatively affect survivor benefits for spouses and dependents [3] Ages 65 to 67 - For individuals close to their FRA, waiting to claim Social Security can yield higher monthly benefits due to smaller reductions for early claims [5] - Delaying claims at ages 65 or 66 can increase monthly payouts by 8% per year until age 70, which is a guaranteed increase by the Social Security Administration (SSA) [6] - This 8% increase is comparable to fixed-income investments, offering a potentially higher yield than current fixed-income market rates [6]

Core Insights - The decision on when to claim Social Security significantly affects financial outcomes throughout retirement [1] - Many individuals fail to adequately consider the optimal age for claiming benefits [2] Age Impact on Social Security Claims - Age directly influences the monthly benefits received from Social Security and the overall retirement income [5] - Claiming eligibility begins at age 62, but studies indicate that waiting until age 70 maximizes lifetime income for most seniors [6] Research Findings - A 2019 study indicated that nearly 60% of retirees who claimed at age 70 had greater lifetime wealth compared to only 6.5% who claimed before age 64, with an estimated $111,000 in benefits left unclaimed by those who started earlier [7] - Recent data from 2023 shows that only 10.2% of American workers claim Social Security at age 70, while over 90% should consider waiting, as not doing so results in median losses of $182,370 in lifetime discretionary spending [8] Claiming Considerations - Individuals planning to claim Social Security should understand the implications of their claiming age on retirement income, as it affects both monthly and lifetime benefits [9]

Group 1 - Retirement is an opportunity for personal fulfillment and exploration, allowing individuals to spend time with loved ones and discover new experiences [1] - Financial planning is essential for a successful retirement, as income needs vary for each retiree [2] Group 2 - Delaying Social Security benefits can significantly increase monthly checks, with an 8% boost for each year past full retirement age, potentially leading to a 24% increase by age 70 [4][5] - Maintaining some risk in investment portfolios is advisable, as overly conservative strategies may limit retirement income; growth stocks can provide returns while dividend stocks offer stability [6][7] - Real Estate Investment Trusts (REITs) can be a valuable addition to a retirement portfolio, providing predictable income through required dividend payouts [9]

Key Points Social Security takes your top 35 years of earnings into account in determining your average career earnings. However, when it comes to figuring your benefit, the formula doesn't treat every dollar of earnings the same way. The $23,760 Social Security bonus most retirees completely overlook › Social Security is a key source of income for those in retirement. Everyone wants to make the most of the benefits they have coming to them, and getting as large a check from the federal government ...

Key Points You may be eligible for spousal benefits from Social Security even if you never worked. You have to wait for your spouse to file for Social Security to claim spousal benefits. Those benefits are only worth so much, though their value increases if they become survivor benefits. The $23,760 Social Security bonus most retirees completely overlook › Social Security is a program that can be full of surprises. For example, did you know that if you claim benefits early and regret your decisi ...

Core Viewpoint - Investors are advised to consider dividend ETFs as a defensive strategy during potential market downturns, with historical performance indicating resilience during recessions [1][2]. Group 1: Dividend ETFs Overview - The State Street Consumer Staples Select Sector SPDR ETF (XLP) focuses on companies selling essential goods, providing stability during economic downturns due to inelastic demand for consumer staples [3][4]. - The State Street Health Care Select Sector SPDR ETF (XLV) includes large healthcare companies, benefiting from consistent demand for medical services regardless of economic conditions [6][7]. - The iShares TIPS Bond ETF (TIP) offers exposure to U.S. Treasury Inflation-Protected Securities, serving as a hedge against inflation and providing liquidity [9][10]. Group 2: Performance and Characteristics - XLP has 40 holdings, with Walmart (11.64%), Costco (9.08%), and Procter & Gamble (7.67%) as its largest components, featuring a 2.66% dividend yield and a low expense ratio of 0.08% [5]. - XLV has outperformed the S&P 500 during past downturns, showing a 12% increase over the past year, with a 1.58% dividend yield and an expense ratio of 0.08% [8]. - TIP has a dividend yield of 3.29%, which fluctuates with inflation, and an expense ratio of 0.18% [10][11].

Planning for retirement helps you determine retirement income goals and prepare for the unexpected. Browse Investopedia’s expert-written library to learn more. https://t.co/rCgTYypBwf ...

Core Insights - Social Security is a reliable income source that can provide increased benefits during inflation and guarantees lifetime payments [1] Strategies to Maximize Benefits - Delaying the claim of Social Security benefits until age 70 can significantly increase monthly payments, as benefits rise each month until that age [2] - Continuing to work and earn a higher income after claiming benefits can also enhance Social Security checks, as benefits are calculated based on the highest 35 earning years [4][6] - The Social Security Administration automatically recalculates benefits based on any higher earnings reported after benefits have been claimed, potentially replacing lower-earning years in the calculation [7]