It doesn’t matter if you are someone looking to retire in the near future or someone who is just preparing mentally for what’s to come when retirement does hit, but understanding how to best balance your portfolio for retirement income is something you should be thinking through right now.
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JPMorgan Equity Premium Income (JEPI) yields 8.38% with monthly dividends and has returned 5.83% year-to-date in 2025.
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JPMorgan Equity Premium Income uses an options strategy that limits upside but protects downside during market volatility.
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Vanguard Total Stock Market ETF (VTI) yields 1.16% but has delivered 15.26% total returns in 2025.
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If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn more here
I don’t need to make a bold statement out of it, but it should go without saying that retirement planning is changing fast. Whether it’s worrying about a potential Social Security shortfall in the next decade or concerns over rising healthcare costs, everyone who’s near retirement should be thinking about income potential this very minute.
At the very top of this strategy list are ETFs, specifically dividend ETFs, two of which stand out right now for very different reasons. The first is built for high monthly income, while the second is designed to provide long-term stability and broad market coverage.
Traditionally, retirement plans focused on a mix of bonds, stocks, drawdowns, and cash reserves, but this model is growing increasingly outdated. For many retirees, this is incredibly outdated, and cash is losing its purchasing power, and interest rates are making staying liquid in cash no longer as appealing as it was 24 months ago, when interest rates were high.
Bonds, a major retirement staple for decades, have provided steady growth in a mixed portfolio but now offer lower yields. As far as drawdowns go, selling stocks in a volatile market can create unnecessary stress and reduce your overall spending, especially if a market downturn is truly bearish and is prolonged over many months or over a year.
The new approach blends income generation with long-term market participation with two different ETFs that can provide structured monthly payments, all while allowing a portfolio to keep growing.
The popular JPMorgan Equity Premium Income ETF (NYSE:JEPI) remains one of the most reliable ETFs available today. The focus is on high-quality US stocks, and the strategy enhances monthly income through options.
Currently, the JPMorgan Equity Premium Income ETF has a dividend yield of 8.38% and pays an annual dividend of $4.72 per share. In addition, investors have seen year-to-date growth of 5.83% in 2025, lending credence to the idea that this is both a growth ETF and a way to provide regular, steady passive income.
The combination of high yield, rising dividends, and a diversified equity portfolio that the JPMorgan Equity Premium Income ETF offers sets it apart from just owning bond funds or basic index funds, appealing to anyone who wants income stability moving into 2026. The JPMorgan Equity Premium Income ETF gives retirees something that is truly valuable, in that they can earn income without having to sell any shares. You could think of this ETF as something akin to a retirement paycheck, which gives you a steady income to budget with.
Additionally, owning the JPMorgan Equity Premium Income ETF helps balance out against market volatility. The options strategy limits upside, which is why it hasn’t grown alongside the growth market, but it also protects your downside during tougher market periods. For retirees who want to protect their capital, this is an attractive choice.
The Vanguard Total Stock Market ETF (NYSE:VTI) is one of the broadest, most efficient equity ETFs ever created. It is designed to appeal to investors who want a balance of large-cap, mid-cap, and small-cap stocks all in one prepared package.
As of November 18, 2025, the dividend yield of the Vanguard Total Stock Market ETF sits at a 1.16% yield and a $3.75 annual dividend payout. Unlike the JP Morgan Equity Premium Income ETF, the Vanguard Total Stock Market ETF is also a growth choice, as it’s earned 15.26% for investors in 2025 to date.
Serving as a growth engine in a retirement portfolio, while the yield is modest, the true value is in its total market exposure. Retirees who rely on high-yield funds risk missing long-term growth. Vanguard Total Stock Market ETF keeps you tied to stocks that focus on innovation, earnings expansion, and overall market performance.
Better yet, owning the Vanguard Total Stock Market ETF keeps expenses low, which is crucial for planning for decades of retirement income, and it’s an ideal choice for those who want stability and growth, without overthinking stock picking.
Altogether, these two ETFs fill different retirement needs as the JP Morgan Equity Income ETF offers income you can use immediately, while the Vanguard Total Stock Market ETF gives you long-term wealth and income you can depend on for years to come. Together, their combined strengths create a retirement plan that is practical, stable, and easy to maintain. Many retirees are going to be looking at moving into this rotation because it gives them control, along with a consistent income. Best of all, there is no need to sell any shares during unpredictable markets.
You may think retirement is about picking the best stocks or ETFs, but you’d be wrong. See even great investments can be a liability in retirement. The difference comes down to a simple: accumulation vs distribution. The difference is causing millions to rethink their plans.
The good news? After answering three quick questions many Americans are finding they can retire earlier than expected. If you’re thinking about retiring or know someone who is, take 5 minutes to learn more here.