Income portfolios?

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mathjak107
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Re: Income portfolios?

Postby mathjak107 » Tue May 16, 2017 8:37 am

this is no longer a current model but in the past this is an example of one . DON'T USE THIS -IT IS NO LONGER CURRENT !

all fidelity funds . overall beta 75% less volatile than thje s&p 500

Total Bond FTBFX 26%

Equity Dividend Income FEQTX 23%

High Income SPHIX 21%


Short-Term Bond FSHBX 17%

Limited Term Bond FJRLX 13%
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Re: Income portfolios?

Postby dualstow » Wed Jun 28, 2017 11:26 am

barrett wrote:Hey dualstow, What are your reasons for wanting an income generating portfolio in retirement?

I'm not saying I do. I was just curious about the absence of income portfolios within the lazy portfolio universe.
Etymology of "dismantle"- to pull down castle walls, but to lit. pull down a cloak.
"'Your life is tedious and brief.' All sundial mottos are sad like that."
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Re: Income portfolios?

Postby sophie » Fri Jun 30, 2017 7:24 am

Well, usually the goal is to minimize income while you're accumulating, to reduce the tax liability. The PP makes the transition into withdrawal phase very well, but most lazy portfolios don't. Having to sell shares frequently would be a pain.

Between Social Security and the PP you should be all set, but what about looking into an annuity? That's actually my plan for about 25% of my retirement savings (with TIAA-CREF). Unlike dividends, the income stream is guaranteed and it will feel like getting a paycheck. No need to mess around siphoning money from multiple accounts or selling shares every month. The PP's cash allocation will be there to cover any shortfalls, and I'll only have to rebalance the PP every 2-3 years. I'm mindful of the fact that eventually investment management is going to become a problem if it's too complicated.
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Re: Income portfolios?

Postby barrett » Fri Jun 30, 2017 2:02 pm

dualstow wrote:Would it be fair to say that none of the so-called Lazy Portfolios are income-oriented? If not, which ones in the boglehead wiki or at portfolioCharts is the most income-oriented?

Is it the case that income and lazy clash because income limits upside?

Sure, lazy portfolios are fine for retirement. Collect interest, sell shares.* That's why we always talk about Safe Withdrawal Rates.
As someone who doesn't have & won't have a pension, I'm just curious. I'll have to make my own pension.


I think Desert gets tired of blowing his own horn so I'll nominate his mix as a good income portfolio. It's kinda Wellesley-ish with 10% in gold. I actually love it for an IRA. Keeps all that dividend and interest income where you can deal with it on your own timeframe, and also gives enough exposure to gold to mitigate sequence of returns risk.
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Re: Income portfolios?

Postby dualstow » Fri Jun 30, 2017 2:16 pm

I'll take another look, Barrett, thanks.

sophie wrote:Well, usually the goal is to minimize income while you're accumulating, to reduce the tax liability.

I've got no real tax issues. The munis are more for diversification, Sophie. However, you have probably hit upon why you don't often see income mentioned in lazy portfolio discussions. I guess that's it.

Between Social Security and the PP you should be all set, but what about looking into an annuity? That's actually my plan for about 25% of my retirement savings (with TIAA-CREF). Unlike dividends, the income stream is guaranteed and it will feel like getting a paycheck.

I have always shied away from annuities, but I will definitely be checking out what's out there when the time is right.
(1) When I first began investing, it was largely about building my own "annuity" with rising dividends. Not high-yielding stocks or REITs, but Pepsi & Chevron, for example.
(2) I still don't like the idea of buying a product from someone who then waits for me to die. O0 I know, it's illogical.
(3) I will likely inherit a large windfall someday (The later, the better). I learned long ago from reading Bogleheads not to ever count on something like that, so I have been investing as if that possibility does not exist. At the same time, I have often considered putting some of that windfall into an annuity, should I actually receive it. A second vp. The idea of buying new dividend stocks at age 60 or 70 or 80 does not sound appealing to me.
Etymology of "dismantle"- to pull down castle walls, but to lit. pull down a cloak.
"'Your life is tedious and brief.' All sundial mottos are sad like that."
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Re: Income portfolios?

Postby mathjak107 » Sat Jul 01, 2017 4:06 am

even at 65 you have long term money you won't eat with for as long as 20 or 30 years . that money is still long term money and a dividend income fund would be just fine . so would dividend paying stocks , i am just not a lover of taking on individual company risk at any point in time for anything but speculation so i like funds instead .
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Re: Income portfolios?

Postby dualstow » Sat Jul 01, 2017 9:20 am

I agree, m. New equity money goes to index funds.
Etymology of "dismantle"- to pull down castle walls, but to lit. pull down a cloak.
"'Your life is tedious and brief.' All sundial mottos are sad like that."
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Re: Income portfolios?

Postby sophie » Sat Jul 01, 2017 9:21 am

dualstow wrote:(2) I still don't like the idea of buying a product from someone who then waits for me to die. O0 I know, it's illogical.


Like medical insurance, after you happen to get sick?

Unlike medical insurance companies, corporations that sell annuities have no direct power over your health. Unless one of them decides to make a deal with a Mafia hit man :-)

I was thinking annuity in part for the guaranteed return (dividends/interest could drop at any time), and in part for the simplicity. When I'm 87 and having trouble negotiating financial websites, I don't want to be struggling with complicated investments and making stupid but costly mistakes. Even the PP could become intractable because of the need to rebalance, especially in/out of gold.
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Re: Income portfolios?

Postby Kbg » Mon Jul 03, 2017 11:33 am

sophie wrote:
dualstow wrote:(2) I still don't like the idea of buying a product from someone who then waits for me to die. O0 I know, it's illogical.


I was thinking annuity in part for the guaranteed return (dividends/interest could drop at any time), and in part for the simplicity.


http://boards.fool.com/the-kicker-for-2 ... 31452.aspx

http://www.philosophicaleconomics.com/2 ... ks/#fourth

Well worth one's time
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Re: Income portfolios?

Postby dualstow » Mon Jul 03, 2017 1:06 pm

Thank you, sir!
Etymology of "dismantle"- to pull down castle walls, but to lit. pull down a cloak.
"'Your life is tedious and brief.' All sundial mottos are sad like that."

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