The index fund is without a doubt the most popular investment vehicle out there. Long touted as being the best investment to buy and hold for decades and live off of during retirement, these types of investments have millions of fans and investors. And considering an S&P 500 index fund will earn an average annual return of around 8 to 9% they’ve no doubt helped millions of people pay for expenses during their retirement years. I personally invest in index funds, but if you watch my channel regularly you know that I’m a much bigger fan of the higher yielding dividend investments. And these investments often get a lot of criticism from investors, particularly the kinds of holdings that I pursue like business development companies, closed end funds, REITs and so fourth.

For one thing if you invest in higher yielding dividend investments in a non retirement account it’s no secret that’s gonna translate into higher taxes. Also with certain higher yielding ETFs and especially closed end funds, they do charge much higher expense ratios than index funds do.
But the truth is many of these higher yielding stocks can be more dependable than index funds. And many of them are much better investments during retirement than index funds. So in todays video we’re gonna run the numbers and take a look at which investments actually fair better during retirement, the index fund or a higher yielding type of investment.

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