Sentences with phrase «bond portion»
The phrase "bond portion" refers to a part of an investment portfolio or a financial plan that is made up of bonds. Bonds are a type of investment where you lend money to a company or government in exchange for regular interest payments and the return of the principal amount when the bond matures. In simple terms, the "bond portion" means the part of a person's investments that consists of bonds. Full definition
The 40 % bond portion of a 60/40 portfolio historically performed it's dual role of capital preservation and income.
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You might allow the overall bond portion to rise by 1 % a year, and run down your equity exposure accordingly, for example.
It will be a candidate for rebalancing if the stock or bond portion grows to 55 percent or falls to 45 percent.
For the international equity and bond portion of my portfolio, I prefer mutual funds and exchange traded funds.
don't even think about bonds (i use cd's myself for bond portion allocation — cause the additional interest bonds pay not enough compensation for the hassle of worrying about a company's solvency) until you're on the back nine, or age 55, like dave said, or real close to retirement.
Advisor does fine with bond portion but as a retiree I hope to at least average the inflation rate with stock portion.
He also works as a Fixed - Income Portfolio Manager on the Financial Reserves Management Team, focusing on maximizing relative - value opportunities in the municipal bond portion of these portfolios.
While most bonds move opposite to the movement of stocks, I Bonds correlate to the movement of inflation, meaning both traditional bonds and I Bonds can be held together to create a diversified bond portion of your overall portfolio.
The chances are that the bequest is big enough to cater for the basics purely from the government bond portion.
He also works as a Fixed - Income Portfolio Manager on the Financial Reserves Management Team, focusing on maximizing relative - value opportunities in the municipal bond portion of these portfolios.
The stock allocation should boost dividend income by ~ $ 12,500 a year and the municipal bond portion should boost income by ~ $ 18,000 a year after tax ($ 26,000 pre-tax).
The bond portion will be tracking the Barclays Capital Aggregate Bond Index which is a good proxy for the entire U.S. bond market.
Tony Giordano: So you could take the dividends from the stock funds, you could start redirecting them into the bond portion of the portfolio.
The bond portion of my investments plod along and have done for years now, they don't make a bundle and they don't loose a bundle, I put money there for this very reason.
The duration of the bond portion of our clients» portfolios currently is approximately 4.4 years.
It will be different, so I think it's a great opportunity for investors to look primarily at the bond portion of their portfolio.
This gives investors a lot of options for tailoring the bond portion of their portfolio to their specific needs and risk tolerance using various bond funds.
Utilizing individual bonds for a majority of the bond portion of an investor's portfolio would serve to minimize this risk.
The bond portions of our portfolios are invested in Vanguard Total Bond Market II Index Fund and, where appropriate, in Vanguard Inflation - Protected Securities Fund (the proportions invested in each fund vary by portfolio).
While the proper allocation to inflation - resistant assets is highly dependent on each investor's unique circumstances and investment strategy, the table above illustrates a 10 % strategic allocation, sourced equally (5 %) from both the stock and bond portions of the existing portfolios.
The inflation portfolio allocation was sourced equally (5 %) from both the equity and bond portions of existing portfolios and rebalanced monthly.
I must ask: After your negative assessment on bond ladders, and knowing what bond funds do in rising interest rates, what DO you recommend for a typical middle - aged investor, for the bond portion of one's portfolio?
The bond portion of my investments have LT Treasuries & TIPS at 50/50.
I've used John Hussman's method of estimating expected returns for stocks (using a simplified version the model that relies on just the CAPE ratio) and the beginning bond yield for the expected return for the bond portion of the portfolio.
With the equity portion likely to grow over time and the bond portion comparatively static, this means such investors become much more exposed to equities as they get older.
The idea behind a glidepath is that if we start with a relatively low equity weight and then move up the equity allocation over time we effectively take our withdrawals mostly out of the bond portion of the portfolio during the first few years.
If you plan to retire overseas or in the United States then you ought to look at using the US Bond ETF's for the bond portion of your portfolio — they are cheaper than the Canadian versions anyway.
You can invest in just a few ETFs to complete the bond portion of your portfolio.
You could simply take one of the portfolios and either reduce or eliminate the bond portion to make it more aggressive for a younger person.
For the bond portion, you might go with 10 % or 15 % in real - return bonds, and the rest in a broad - based fund that includes both government and corporate bonds.
The bond portion might be allocated between those that are short - term and long - term, government versus corporate debt, and so forth.
My rebalancing spreadsheet indicates that the bond portion has increased to 2.5 % of the portfolio.
That's not desirable because the bond portion of one's portfolio needs to provide safe haven in times of distress.
Adding foreign bonds boosts the risk of the bond portion.
BTW, I'm doing the lazy portfolio with the ratio 60 % VTI, 40 % VEU right now (I haven't added the bond portion yet).
I think we can agree that unhedged foreign bonds adds risk to the bond portion due to currency fluctuations.
iShares says that the rationale for owning floating - rate securities is to minimize losses in the bond portion of the portfolio in a rising interest rate environment.
Needless to say, the biggest risk to the bond portion of our portfolios is rising interest rates and inflation.
Taking these factors into account, what are your thoughts on eliminating the bond portion of the sleepy portfolio?
However, the portfolio should be fairly tax efficient (except for the bond portion) as rebalancing is done by adding new money and not selling current holdings.
To the bond portion, we diversified into high yield bonds and cash.
For example, in the bond portion of a portfolio with a large fixed income allocation, it's possible to pursue better income opportunities while also managing the portfolio's sensitivity to interest - rate movements or other bond risks using an actively managed, unconstrained bond fund.
nice: The bond portion tracks the DEX Universe Bond Index.
If you decide to slice and dice here, allocate between 20 - 40 % of the bond portion to TIPS / I - bonds, and between 10 - 20 % to High Yield.
SET BOND ALLOCATION — You can set the bond portion from step three with just a Total Bond Market Index fund and be done!
First, I'd want the bond portion to equal my age.
But given where interest rates are today, it may make sense to use CDs for some of the bond portion of your portfolio.
If a person chose to use TBM for the bond portion of their portfolio, I wouldn't say they're making a mistake.