"First, if you're not familiar with ETFs, or exchange-traded funds, they're funds that invest in a bucket of assets. In the case of SCHD, the fund tracks the Dow Jones U.S. Dividend 100 Index. That index is comprised of high-quality U.S. businesses with at least 10 years of consistent dividend payments, and dividend payments that are deemed to be sustainable."
"There's a reason I spend so much time managing my retirement portfolio. I know that Social Security is not going to pay for the retirement I really want. I'm expecting some of my costs to decrease in retirement. I may, for example, not need such a big house, and I may have the option to ditch my current ZIP code for a remote part of the country where costs are lower on a whole."
"But I also know that certain expenses, like healthcare, might increase in retirement. And I also don't want to end up in a situation where there's no room in my retirement budget to travel or pursue fun activities. For these reasons, I can't just rely on Social Security to cover my bills. Instead, I'm actively saving and investing money so I'm able to supplement those benefits."
Social Security alone often will not cover desired retirement lifestyles, so active saving and investing are necessary. Some costs may fall in retirement, such as housing or relocation, while others like healthcare often rise. Dividend-focused investments can supply steady portfolio income. The Schwab U.S. Dividend Equity ETF (SCHD) tracks the Dow Jones U.S. Dividend 100 Index, which includes U.S. companies with at least ten years of consistent, sustainable dividend payments and strong financial health. SCHD reduces risk by excluding companies with unstable dividends and should be part of a diversified portfolio rather than the sole retirement asset.
Read at 24/7 Wall St.
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