These 3 Dividend ETFs Are a Retiree's Best Friend
As a retiree, you have to figure out how to help your money both cover your costs today and potentially last at least as long as your retirement does. That can be a tough balancing act to achieve. After all, every dollar you spend from your account is a dollar that can no longer compound on your behalf to potentially cover your future expenses.
One strategy that some retirees follow is to seek out investments that pay decent dividends. Their hope is that dividends will give them cash to help replenish the money they're spending to cover their daily expenses without forcing them to sell their ownership stakes. If those dividends not only get paid but also increase over time, they could potentially even help that retiree keep up with inflation.
While that seems awesome on the surface, the biggest problem with that strategy is that dividends are never guaranteed payments. If the economy or their operations turn sour, companies can cut their dividends to attempt to protect the rest of their business.
Source Fool.com
