Retirement Income Funding

What Would A 30-Year Bond Ladder Cost A Retiree Today?

Building bond ladders for retirement income is an important but understudied topic. Especially since we are at a point in time when many are worried about future interest rate increases, bond mutual funds risk locking in capital losses when shares are sold to meet expenses, while a bond ladder will still provide the obligated cash flows, no matter what happens with interest rates.

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What Are Annuities?

Annuities are like power tools. In the right hands, they can help you considerably, but if you don’t know what you’re doing, you could cut your fingers off.

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Do You Understand How Bonds Work?

Before we can discuss bonds in depth, it is important that we establish a common understanding of what bonds are and how they work. As a starting point, a bond is a contractual obligation to make a series of specific payments on specific dates.

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3 Ways To Incorporate Bonds Into Your Retirement Strategy

Bonds can be incorporated directly into a retirement strategy in three broad ways:
1. An assets-only approach to build a total returns investment portfolio,
2. Matching the duration of bond funds to the duration of the retirement liability, and
3. Holding individual bonds to maturity to generate the desired cash flows to fund expenses on an ongoing basis throughout retirement.

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