Claiming Social Security at 63 and Earning $60K? These 3 ETFs Help Replace the Withheld Check
Ryne MauckWed, September 23, 2026 at 1:45 AM GMT+3 5 min read
Quick Read
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Social Security withholds $1 for every $2 earned above the annual cap, creating an income gap three ETFs can fill.
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JEPI delivers a high-single-digit yield in 12 monthly payments, mirroring Social Security's cadence, while RDVY has returned 82% over five years.
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USFR pays roughly $1.89 per share annually with near-zero rate risk, but its income shrinks when the Fed cuts rates.
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Two retirees, same $1 million, same 4% rule, buy one finished with $1.4 million, the other hit $0 in 12 years. Our free reader guide explains the flaw that separated them, and the income-first method built to avoid it.
You started collecting your Social Security benefit at 63, then kept your paycheck. Now the Social Security Administration is clawing back a chunk of that benefit because you're over the earnings-test limit. The math stings: for every couple of dollars you earn above the annual cap while under full retirement age, the government withholds one dollar of benefits. That is exactly the gap three funds can help you fill: WisdomTree Floating Rate Treasury Fund (NYSEARCA:USFR), First Trust Rising Dividend Achievers ETF (NASDAQ:RDVY), and JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI).
Why the Withheld Check Hurts Right Now
At a 4.00% upper-bound fed funds rate and a 2027 COLA tracking toward 3.3%, cash finally pays a meaningful yield, yet inflation still bites. You have a $60,000 salary plus a partial Social Security check. The goal is to replicate the withheld dollars in your brokerage account with three sleeves: one that acts like a high-yield savings buffer, one that grows your income over time, and one that pays you monthly like the check you're missing.
The 4% Rule is Broken, Built On A World That No Longer Exists
Every retiree knows about the 4% rule, but it frames retirement as a slow liquidation and still causes retirees with seven-figure accounts to agonize over a dinner out.
There's a different way to run the math that makes more sense today. Build an income floor — dividends, interest, and Social Security that cover your essential bills every month — and you never have to sell shares into a down market just to pay them.
Our free reader guide, The 4% Rule Is Broken, walks through it in about 15 minutes. Access the report here.
USFR: Cash-Like Yield With Almost No Rate Risk
USFR holds U.S. Treasury floating-rate notes, so its coupon resets with short-term Treasury rates. When the Fed is holding above 4%, that shows up in the distribution. The fund pays monthly; the most recent payout was $0.16046 per share, with a trailing 12-month total of $1.88897. On a share price near $50.50, that represents real income without the volatility of long bonds. Duration is minimal because the notes reprice roughly weekly, so the principal barely moves. The 0.15% expense ratio means $998.50 of every $1,000 invested remains working for you. Year to date, USFR is up 2.84% in price on top of the coupon. Park cash reserves here.
RDVY: Dividend Growth to Outrun the COLA
Living costs keep rising, so a static income stream loses ground. RDVY screens for U.S. large- and mid-cap stocks with growing dividends, healthy payout ratios, positive earnings growth, and strong balance sheets, then equal-weights roughly 50 names. That results in a portfolio tilted toward semiconductor equipment leaders like Applied Materials (4.68%), Lam Research (4.42%), and KLA (4.14%), plus insurers and money-center banks such as Allstate, Travelers, Chubb, and JPMorgan Chase. Distributions land quarterly. The payout floats with company results, but the total-return engine has delivered strong performance: RDVY is up 15.71% year-to-date, 20.73% over one year, and 81.86% over five years. With $24.48 billion in assets, liquidity is not an issue.
JEPI: A Monthly Deposit That Looks Like the Missing Check
JEPI is the closest thing to a paycheck replacement available in a single ETF. The manager holds a low-volatility slice of large-cap U.S. stocks, then sells S&P 500 call options through equity-linked notes to generate premium income. That premium gets paid out monthly. The most recent distribution was $0.37142, and the trailing 12-month total is $4.58338. On a share price of $56.66, that is a high-single-digit yield delivered in 12 monthly payments, exactly matching the cadence Social Security uses. The fund is massive at $44.75 billion in net assets, with top holdings including Howmet Aerospace, Johnson & Johnson, Eaton, Trane Technologies, and Lam Research.
Trade-Offs Before You Commit
USFR income falls with short-term rates. When the Fed cuts, your monthly check shrinks. RDVY's quarterly distribution is variable: the latest payout was $0.1474 versus $0.1813 the prior quarter, and the fund is down 2.35% over the past month. JEPI trades upside for income; in a ripping bull market, its total return will lag the S&P because the call-writing caps gains. YTD price appreciation is a modest 4.46%. None of these three replaces a permanent benefit reduction, but blended together, they provide cash-like safety, rising income, and a monthly deposit that arrives on schedule. That is the income structure the Social Security earnings test is prompting you to build.
Before Your Next Withdrawal, Run One Number ( It's Not The 4% Rule Everyone Knows)
Take your essential monthly expenses and subtract your guaranteed income — Social Security, plus any pension. What's left is your income gap, and how you close it determines whether retirement runs on share sales or on a paycheck your portfolio writes you every month. Our free reader guide, The 4% Rule Is Broken, shows exactly how to close that gap with portfolio income: a worked example (one retiree needed about $480,000 in income-producing assets to cover his essentials for good), an eight-point conversion checklist, and the 20-year numbers comparing dividends to withdrawals. It's free and takes about 15 minutes to read. Get the guide here before you take your next withdrawal.
Contact editorial@247wallst.com for any questions or corrections.
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