Cash Pays, but It Doesn't Grow: Why Advisors Still Favor Dividend ETFs for Retirees
Cash only feels safe when you forget about the destructive impact of inflation.
Overview
It's not difficult to find an attractive yield on cash today. However, for retirees, parking everything in cash can create a costly illusion of financial safety. The money may be there when you need it, but it doesn't grow. And unless you earn enough interest to keep pace with inflation, you're losing money.
If you're worried about how you'll cover the cost of an emergency, but equally concerned about your money losing value, working a dividend-paying ETF into your retirement plan may provide the best of both worlds.
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Details
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.