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Insights · 08.27.25

Using Distributing Ladder ETFs for Recurring Retirement Income

Empower retirement planning with distributing ladder ETFs—monthly income, annual principal payments, and built-in inflation protection for client portfolios.

Key Points

What it is

Learn how distributing ladder ETFs can manage cash flow to support retirement planning.

Why it matters

Managing cash flow with strategies dedicated to establishing recurring annual payments is critical to achieving retirement goals.

Where it's going

Distributing ladder ETFs may provide consistent retirement funding with tax- or inflation-protection benefits, with the ease of use of an ETF.

After decades of helping clients accumulate wealth, you must inevitably shift their investment journey from accumulation to preservation and retirement planning. Managing cash flow from retirement savings and following strategies dedicated to establishing a defined income stream are critical to achieving retirement goals.

 

Developing a disciplined plan is crucial, and inflation and taxes are key challenges to consider. Distributing ladder ETFs — an innovative new investment solution designed to address these challenges — can play an important role in delivering on your clients’ lifestyle goals in retirement.

 

Tax-exempt or inflation-linked distributing ladder ETFs are designed to pay monthly income and make annual principal distributions. They are available in a variety of preset time periods up to 30 years, to suit your clients’ needs. They provide the benefits of an ETF and a bond ladder with a pre-determined end date.

 

As a hypothetical example, a retiree may seek income to complement Social Security payments and meet minimum required distributions from a defined contribution retirement account. They may invest $1 million into a 30-year inflation-linked distributing ladder ETF, designed to pay monthly income and return principal annually over 30 years.

 

You face a number of investment choices and risks when creating a retirement plan for your clients. Distributing ladder ETFs can provide a consistent source of retirement income with tax or inflation-protection benefits, and the ease of use of an ETF. 

Main Point

A Tool Designed for Consistent Retirement Funding

Distributing ladder ETFs offer an inflation- and tax-aware tool for advisors, designed to generate reliable retirement funding through monthly income and annual principal repayments.

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Distributing Ladder ETFs: An Innovative Retirement Solution

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