2 ETFs That Are All You Need for Retirement

In 1994, financial planner William Bengen laid out a compelling case for a very simple retirement withdrawal strategy that is now commonly known as the 4% rule. His work showed how an investment strategy diversified across common stocks and intermediate-term Treasury bonds could help a retiree navigate a 30-year retirement with very little chance of running out of money. 

Today, in the age of low-cost exchange-traded funds (ETFs) that focus on indexes, it becomes pretty simple to create such a portfolio with just two funds. For stocks, the Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP) is certainly worth considering. For intermediate Treasury bonds, it's hard to beat the Vanguard Intermediate-Term Treasury Fund Index ETF (NASDAQ: VGIT). Put those two ETFs together in an intelligent way, and they could very well wind up being all you need for retirement.

Image source: Getty Images.

Continue reading


Source Fool.com