One of the biggest issues with retirement is balancing out your cash flows. Individual bonds generally pay out their coupons only once or twice a year, while most stocks, exchange traded funds (ETFs) and mutual funds pay on a quarterly basis.
But bills are generally due every month. From the cable bill to our mortgages, our lives mostly revolve around a monthly schedule. And with various sources of income occurring at different times, it can be a challenge to manage all of those payouts. Overspending and not budgeting properly are some of the biggest hazards in retirement.
Which is why investors should try ETFs that pay their dividends monthly.
Aside from the ability to pay your car payment on time, monthly dividends can also help on the compounding front and boost returns if those payments are reinvested. In addition, waiting six months for your money reduces the true yield on your investment. All in all, monthly dividend payments can be a godsend for those investors near or in retirement.
Here are five ETFs that pay their dividends monthly.