Planning for Retirement with iShares ETFs
Post on: 20 Апрель, 2015 No Comment
Americans are living longer today than ever before — one of the most breathtaking human achievements of our age. But with longer life comes more years in retirement. Today, the average retiree is expected to spend 19 years in retirement — much longer than retirees even in the 1990s.* Now more than ever, your retirement portfolio has to live as long as you do.
A combination of low-cost iShares ETFs can help you get the most out of your savings so you can enjoy the retirement you want. ETFs are a great addition to your portfolio whether you use a 401k plan, an IRA, a savings account or a combination of all three.
Using ETFs when planning for retirement
- Lower costs; more savings
Costs add up; using ETFs, which have lower costs, can help you generate more returns over time.
It doesn’t matter if you’re just starting to save for retirement, 20 years in or already enjoying your golden years, ETFs can play an important role in your investment portfolio.
When every dollar counts, the cost of taxes can’t be ignored. ETFs can offer significant tax advantages over time. With some ETFs, you could save up to $20K in taxes alone over 10 years on a $100K investment.**
Because ETFs are a mix of assets, diversification is built in.
Because most ETFs are diversified, you don’t have to worry about doing research on individual stocks and bonds.
* Source: US Social Security Administration.
** Source: Morningstar, as of 5/31/13. “Tax cost” is a Morningstar measure of the impact of taxes on capital gains and income distributions on performance.
No matter where you are in your career, the responsibility for building a secure retirement is yours. Fortunately, there are plenty of actions you can take right now to navigate the new world of retirement, wherever you are in your journey.
Retirement may seem far off, but the habits you establish now will serve you throughout your career. And putting time on your side by starting early will give you much greater freedom and flexibility later.
See what you should be doing now
There is still a lot you can do today to build a secure retirement, including actions to take, habits to build, and principles to understand. Best of all, the more you know about building your retirement, the more you’ll recognize how much of the power lies in your hands.
Learn the 5 actions you need to take now
