The article discusses the need for re-evaluating traditional financial strategies for retirees, specifically the '100 Minus Your Age' rule, due to shifts in the economic landscape, including increased life expectancy and inflation. It emphasizes the importance of tailored investment strategies rather than cookie-cutter approaches, advocating for at least some exposure to bonds for risk mitigation. The article also introduces Fidelity Investments and highlights two of their bond ETFs—Fidelity Low Duration Bond Factor ETF and Fidelity Enhanced High Yield ETF—as favorable options for retirees seeking income.
In light of the economic, demographic and health quality changes that American retirees currently face, certain rules of thumb are due for re-evaluation.
The cookie cutter approach toward portfolio structure increasingly lacks relevance in contemporary American society in terms of life expectancy, inflation, taxes and a host of other parameters.
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