Q: Which is better for retirement income preferred ETFs, MLPs, or aristocrat dividend paying stocks? I only have $250,000 to produce retirement income to go along with $1600/month SSA. I am returning to Atlanta in 6 months.
A: There is not one of these investments that is “better” than another. They each serve a different purpose and are completely different investments altogether. We actually believe a well-diversified strategy would include a combination of all of the investments that you mentioned. There are times when MLPs look more attractive from a momentum and valuation perspective than the other two. We would argue that having some dividend paying stocks (such as the Aristocrat index) in your portfolio is always a good idea. The weight and specific allocation is very much specific to each investor’s own situation, goals, risk tolerance, return expectations, etc.
If you would like to schedule a time to see one of our advisors when you get back in town, please don’t hesitate to let us know.