As of 2022, the average net worth of Americans aged 65 to 74 is approximately $1.79 million, according to Federal Reserve data, while the median retiree has a net worth of about $409,900. This indicates that despite market downturns, many retirees may be in a stronger financial position than perceived.
Investing in closed-end funds (CEFs) could significantly enhance retirement income, with examples including the Adams Diversified Equity Fund (ADX) yielding 8.8%, the Nuveen Core Plus Impact Fund (NPCT) at 12.2%, and the Nuveen Real Asset Income and Growth Fund (JRI) at 12.3%. Collectively, these funds offer an average yield of 11.1%, potentially generating around $200,000 annually for retirees with a $1.79 million investment.
This investment strategy can provide retirees with financial flexibility, allowing them to choose between retiring early or continuing to work, leveraging the high dividend payouts for lifestyle enhancements or additional savings.
