Older adults likely began their investing careers before exchange-traded funds existed and have stuck with traditional mutual funds.
But as retirement approaches, many investors look at their portfolios with a fresh set of eyes and make adjustments.
And the more I work with in-retirement portfolios, the more I like ETFs and traditional index funds for several reasons:
1) Index Funds and ETFs Lend Themselves Well to Cash Flow Extraction
For retirees who are using income distributions from their investments to help cover living expenses, the small fees levied by index funds and ETFs ensure that more of those payouts flow to them.
For total-return-oriented retirees who are rebalancing (trimming appreciated securities) to meet living expenses, index funds and ETFs also work well. These ar

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