How to Use the Summer Lull to Get Your Retirement Income Strategy on Track

If you watch CNBC for long enough, you will notice that even the smallest events on the dullest trading days can seem like they are really important. It is the most public example of how Wall Street writ large benefits from keeping investors' emotions elevated. The one time of year when there's a bit of a reprieve is summer. It is a good time for you to review your retirement income strategy. Here's what you should consider doing this summer.

The summer lull can let you think more clearly

Summer! The kids are out of school, and families are taking vacations. There aren't as many people working on Wall Street or trading. Perhaps you'll even have the pleasure of hosting the grandkids for a spell. Enjoy time with your family, but also recognize that this lull in the frenetic pace of life is an opportunity to slow down and think strategically about your investments.

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For example, if you are using your individual stock portfolio to generate investment income to supplement your Social Security checks, you may want to make some adjustments. If a stock you own has rocketed higher, your portfolio may no longer be as diversified as you think.

A rebalancing may be in order, such as shifting assets to an underperforming area like consumer staples, which is home to many reliable Dividend Kings. Companies like Procter & Gamble (NYSE: PG), Coca-Cola (NYSE: KO), and Hormel (NYSE: HRL) have increased their dividends annually for at least five decades, and their stocks offer attractive yields and valuations right now.

Maybe consider stepping back from active management

That said, you may also want to take a moment to consider the value of your time. The summer may remind you that spending time with family and friends is often much more enjoyable than spending it with spreadsheets and annual reports. If that is true for you, then getting your retirement income strategy back on track may mean buying dividend-focused exchange-traded funds (ETFs).

One of the most popular dividend ETFs is Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD). It uses a complex screening process to select 100 financially strong, well-run companies with high yields and growing dividends. It is essentially doing what most dividend investors aim to do with their portfolios. The yield is 3.2%, and the expense ratio is a surprisingly low 0.06%.

For those who prefer a higher yield, State Street SPDR Portfolio S&P 500 High Dividend ETF (NYSEMKT: SPYD) could be attractive. It buys the 80 highest-yielding stocks in the S&P 500 index (SNPINDEX: ^GSPC). The yield is 4.2%, and the expense ratio is 0.07%.

Think carefully about what you want to own while you have the time

The big picture is that the investing lull that often takes place during the summer can be more than just an emotional breather. It can give you the space to think about your dividend portfolio and how to improve and simplify it. Take advantage of this time personally and financially, and you may find you want to make some changes to your life. And if that includes spending less time managing your investments and more time watching the grandkids, well, that's a great life decision (and a good reason to buy some dividend ETFs).

Reuben Gregg Brewer has positions in Hormel Foods, Procter & Gamble, and Schwab U.S. Dividend Equity ETF. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.