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Why Baby Boomers Are Turning to ETFs for Retirement Planning

The article from MSN discusses why Baby Boomers are increasingly turning to Exchange-Traded Funds (ETFs) for their retirement planning. ETFs offer several advantages that appeal to this demographic: they provide diversification, which reduces risk by spreading investments across various assets; they have lower expense ratios compared to many mutual funds, which is crucial for retirees looking to maximize their income; and they offer liquidity, allowing investors to buy and sell shares throughout the trading day. Additionally, ETFs can be more tax-efficient due to their structure, which is beneficial for those in retirement who might be more sensitive to tax implications. The article also notes that the simplicity and transparency of ETFs make them attractive, as they track indexes and thus require less active management, aligning well with the desire of many Boomers to simplify their investment strategies as they approach or enter retirement. This shift towards ETFs reflects a broader trend among retirees seeking to balance growth, income, and preservation of capital in their later years.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/other/why-baby-boomers-are-turning-to-etfs-for-retirement-planning/ar-AA1ymjn7 ]