JAAA - 3 Bank Funds To Buy For Your Retirement Income
2024-07-01 07:35:00 ET
Summary
- The financial sector is still out of favor due to rate shock, income is pouring into the willings' coffers.
- You can invest in banks, bank-like institutions, or both. Don't neglect this sector.
- Lower risk, higher yields, a retiree's dream.
Co-authored by Treading Softly
There's a classic saying that "if you can't beat them, join them."
When it comes to approaching the market to gather income from your holdings effectively, there can be areas in the market where you cannot produce better income than the companies that already exist there. The banking sector has existed for an exceptionally long time and continues to be a vital part of the economy because it provides financial services that other companies and sectors have not been able to effectively provide on their own. We've seen that when companies want to provide similar services, they become a bank; look at NewtekOne ( NEWT ) for example. They were a fantastically well-run BDC (Business Development Company), but they decided that they wanted to expand their offerings to be more of what a financial institution would be. So, they decided to become a bank because they could not keep up with banks without becoming one themselves. They effectively said we can't beat them, so we're going to join them....
3 Bank Funds To Buy For Your Retirement Income