Yahoo Finance 3 Excellent ETFs for Your IRA
Investors have only a few days left to contribute to their 2023 IRAs before the April 15th tax filing deadline. Both Traditional and Roth IRAs offer significant tax advantages, but it's important to have a plan for saving for retirement that considers taxes without basing decisions solely on them.
Contributions to traditional IRAs can be deducted from taxable income, but taxes are owed when you withdraw the money in retirement. With Roth IRAs, there is no upfront deduction, but withdrawals can be made tax-free.
IRAs allow investors to buy individual stocks, bonds, ETFs, or mutual funds. ETFs are becoming increasingly popular since they are excellent tools for building a diversified retirement portfolio at a low cost. Income-paying assets are well-suited for IRAs since income is deferred or sheltered from taxes.
The SPDR Portfolio S&P 500 ETF SPLG is now the lowest cost S&P 500 index tracking ETF. It has about $34 billion in assets under management and charges just 0.02% annually. Microsoft MSFT and Apple (AAPL) account for about 13% of the portfolio.
The Schwab U.S. Dividend Equity ETF SCHD invests in high dividend stocks selected for fundamental strength relative to their peers. Texas Instruments TXN and Cisco CSCO are among the top holdings in the portfolio.
The iShares Core High Dividend ETF HDV provides exposure to high quality companies that have had strong financial health and an ability to sustain above average dividend payouts. Exxon XOM and Chevron CVX are its top holdings.
To learn more, please watch the short video above.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
iShares Core High Dividend ETF (HDV): ETF Research Reports
Schwab U.S. Dividend Equity ETF (SCHD): ETF Research Reports
SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports
