From 24/7 Wall St. · Ryne Mauck · · 1m 30s
At 68 With $780,000, Do You Live on Dividends or Sell Shares?
Three ETFs let retirees balance dividend income with share sales without selling at a loss.
In brief
Three ETFs let retirees balance dividend income with share sales without selling at a loss. Retirees at 68 with $780,000 can use three ETFs to receive dividends while selling shares without timing mistakes. Originally reported by 24/7 Wall St..
Retirement Income Dilemma
At 68 with $780,000, retirees face choosing between living only on dividends or selling shares for cash.
Dividend vs. Share Sales
Dividends and share sales both convert to cash but differ in how they require decisions from investors.
Three ETFs for Balance
The iShares Core High Dividend ETF (HDV), Vanguard Morningstar Total Stock Market ETF (VTI), and iShares 3-7 Year Treasury Bond ETF (IEI) combine income, growth, and protection.
Dividends Work Automatically
HDV pays income automatically with low fees, but concentrates in healthcare, consumer staples, and energy sectors.
VTI Supplies Growth
VTI owns the whole U.S. stock market and has outperformed HDV by 92% over ten years, providing growth for share sales.
IEI Protects Against Bad Sales
IEI holds short-term U.S. Treasury bonds to prevent selling stocks at a loss during market downturns.
Trade-Offs to Consider
HDV’s sector focus, the need to refill the reserve in good years, and IEI’s sensitivity to interest rates create risks.
Why This Mix Fits at 68
At 68 with $780,00:00, this ETF mix provides automatic income, growth for share sales, and protection from bad timing.
The one thing
Retirees at 68 with $780,000 can use three ETFs to receive dividends while selling shares without timing mistakes.
