Retirees Can Draw $22,125 a Year From 2 ETFs on a $750,000 Portfolio

2 articles · Updated · 24/7 Wall St. · May 24

$750,000 split evenly between iShares Short-Term National Muni Bond ETF and Schwab U.S. Dividend Equity ETF produces a 2.95% blended 30-day SEC yield, or about $22,125 a year.
The mix targets retirees who want income and capital preservation without higher-fee products such as covered call ETFs, which can limit upside, weaken total returns and add tax complexity.
SUB supplies short-duration municipal bond exposure with a 1.82-year average duration, mostly AA or AAA credit quality and federally tax-exempt income; SCHD adds 100 dividend-paying U.S. stocks yielding about 3.28%.
Tax efficiency is central to the strategy: SUB's payouts avoid federal income tax, SCHD's dividends are generally qualified, and the portfolio's weighted expense ratio is just 0.05%, or roughly $375 annually.

Does this popular two-ETF strategy leave your retirement savings dangerously exposed to inflation and global market shocks?

Why is the 'shoebox strategy' being called one of the most powerful tax-free retirement tools available today?

A new 'senior surtax' is hidden in 2025's tax law. Could your retirement plan accidentally trigger it?