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Investors who bought the iShares Preferred & Income Securities ETF (NASDAQ:PFF) did so for one reason: steady monthly income from a diversified pool of preferred stocks, without picking individual issues.
Preferred shares can offer enticing high-single-digit yields, but they can create a misleading sense of safety. I detail some of the biggest potential traps that retirees often fall into. I also share some of my top preferred picks of the moment.
Bessemer Group Inc. grew its position in iShares Preferred and Income Securities ETF (NASDAQ: PFF) by 32.1% during the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 132,563 shares of the company's stock after purchasing an additional 32,230 shares during the quarter.
Preferred stock ETFs sit in an awkward corner of the income market: too rate-sensitive to feel like true fixed income, too subordinated to trade like common equity.
The iShares Preferred and Income Securities ETF (PFF) remains the largest preferred stock ETF on the market, managing approximately $13.17 billion in assets under management.
If you own the iShares Preferred and Income Securities ETF (NASDAQ:PFF) for the monthly check, the question that matters is whether those checks keep clearing through the next credit cycle.
A 60-year-old who wants to retire immediately faces a straightforward challenge: Social Security benefits typically remain several years away. With full retirement age at 67, a single retiree targeting $3,200 per month, or $38,400 annually, needs a dedicated source of income to bridge that seven-year gap. A portfolio of roughly $480,000 can fill the role, but... A $480,000 Bridge Portfolio That Quietly Pays a 60-Year-Old $3,200 a Month Until Social Security at 67
A 70-year-old retiree with a $1.1 million portfolio who wants to generate $5,800 per month, or $69,600 annually, quickly encounters a challenge when applying traditional retirement planning guidelines. Using the classic 4% withdrawal rule, a $1.1 million portfolio would produce approximately $44,000 per year, leaving a gap of about $26,000 between expected income and desired... A $1.1 Million Portfolio That Pays $5,800 a Month and Lets a 70-Year-Old Skip the 4 Percent Rule Entirely