Sentences with phrase «rely on their bond portfolio»

This may not be palatable to fixed income investors, especially those who rely on their bond portfolio as a source of relative safety and stability.

Not exact matches

She relies on a database of 1,000 simulations of future returns to conclude that, 75 years from now, a Social Security trust fund portfolio that includes stocks will produce a healthy ratio of assets to benefits, while a trust fund consisting of only bonds will be completely exhausted.

Given those durations, an investor with 15 - 20 years to invest could literally plow their entire portfolio into stocks and long - term bonds, in expectation of very high long - term returns, with the additional comfort that their financial security did not rely on the direction of the markets, thanks to the ability to reinvest generous coupon payments and dividends.

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.

We'll rely on equities and property to keep us ahead of inflation over the long - term and look into more short - term conventional bond funds as our model portfolio's time horizon ticks down.2

If your portfolio is well diversified with assets that tend to perform differently from each other — international stocks, small company stocks, large company stocks, bonds and real estate — then when one asset class is losing value, you can rely on holdings in another asset class that are more stable or perhaps increasing in value.

With that sort of disparity, many retirees prefer to go with the higher fixed payment and rely on draws from savings invested in a diversified portfolio of stocks and bonds to prevent inflation from eroding their purchasing power.

I rely on them for stock, bond, mutual fund and ETF analysis and to adjust my portfolios accordingly.

The debt portion provides the safety to the portfolio where it relies on bonds to bring in more certainty.

In which case you can rely on your portfolio of stock and bond funds for any income needs beyond what Social Security provides.

Besides, even if bond yields do rise, as they will eventually, you'll still be relying mostly on the stocks in your portfolio for long - term growth.

«Investors who rely on bond products to keep them safe and provide a reasonable rate of return could be very disappointed for many years,» explains Miles Clyne, a portfolio manager with the Tycuda Group at MacDougall Investment Counsel Inc. in Langley, B.C. Current low interest rates and the impact of rising rates in the future, are «foretelling a not - so - pretty picture.»

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.

If you rely solely on a portfolio of stocks and bonds for retirement income, you have to set a conservative withdrawal rate in case markets perform unusually poorly or you live exceptionally long (or both).

And while small business owners may be tempted to rely on the success of their business as their sole source of income and retirement savings or only diversify their portfolios among stocks and bonds, there are other options they should consider to secure their retirement savings in today's market.

As an investor gets older they will need to rely on their investment portfolio for a steady income, which is where a higher allocation to bonds comes into play.