As you transition into retirement, consider shifting your investment focus to income-producing assets like dividend-paying ETFs. Schwab U.S. Dividend Equity ETF (SCHD) offers a balanced portfolio of quality stocks with annual dividend growth. It maintains an expense ratio of 0.06% and a dividend yield of 3.5%, outperforming the S&P 500.

To balance equities, consider adding Vanguard Intermediate-Term Bond ETF (BIV) to your portfolio. This ETF provides stability with a diversified selection of high-quality bonds, including U.S. government and corporate bonds. With an expense ratio of 0.04% and a dividend yield of 3.5%, it complements the equity component well.

By combining Schwab U.S. Dividend Equity ETF and Vanguard Intermediate-Term Bond ETF, you can create a well-diversified, income-producing portfolio for retirement. This balanced approach allows room for higher-yielding securities while maintaining stability. Rebalancing annually will help you stay on track with your investment goals.

Read more at Nasdaq: These 2 Dividend ETFs Are a Retiree’s Best Friend