Many Americans hope to retire in their 60s, but some financial experts warn that when it comes to retirement planning, investors shouldn’t stick to an age but focus more on how much they have saved.
“Retirement is not an age,” financial expert and radio show host Chris Hogan said on CNBC. “It is a financial number.”
Hogan argued that sticking to a specific age means that investors are focusing on the wrong number.
According to Charles Schwab’s latest nationwide study, Americans believe they require $1.9 million to retire.
However, Hogan does not believe there is a one-size fits all number to retirement. Instead, he advised investors to determine how much money they will need per year to fund their retirement. Once a ballpark yearly total is calculated, investors should then work backward to figure out how much they need to grow their nest egg.
As ETF investors look for ways to generate income and better manage risk in today’s market environment, one may consider something like the Nationwide Nasdaq-100 Risk-Managed Income ETF (NYSE Arca: NUSI), which seeks current income with a measure of downside protection.
NUSI follows a rules-based options trading strategy that seeks to produce high income using the Nasdaq-100 Index, an index of the 100 largest non-financial stocks on the Nasdaq exchange. The ETF may potentially complement traditional equity and fixed income allocations or function as a possible hedge for investors.
The Nationwide Risk-Managed Income ETF establishes a collar strategy to generate monthly income. Collar strategies involve holding shares of the underlying stock while at the same time buying protective put options and writing calls for the same security. A put option gives its owner the right but not the obligation to sell the underlying asset at a specified price and on a specified date. A call option gives its owner the right but not the obligation to buy that asset instead.
For more news, information, and strategy, visit the Retirement Income Channel.
This article was prepared as part of Nationwide’s paid sponsorship of ETF Trends.
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Nasdaq-100® Index: A rules-based, market capitalization-weighted index of the 100 largest, most actively traded U.S companies listed on the Nasdaq stock exchange.
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