Conservative Income Portfolio

Maximise income with capital preservation as the primary goal.

Allocation Breakdown

5 Assets

US Aggregate Bonds

High-Yield Dividend Stocks

TIPS (Inflation Protected)

Preferred Stock

Cash/Money Market

Target Allocation

Asset Class	Weight	Example Ticker
US Aggregate Bonds	35%	AGG
High-Yield Dividend Stocks	25%	VYM
TIPS (Inflation Protected)	20%	TIP
Preferred Stock	10%	PFF
Cash/Money Market	10%	SHV

Risk Level

Very Low

Rebalance Frequency

Quarterly

Advantages

Multiple income streams
Very low volatility
Inflation protection via TIPS
Capital preservation focus

Disadvantages

Very limited growth potential
Preferred stocks can be illiquid
High-yield dividends can be cut
May not sustain purchasing power over 30+ year retirements

About This Portfolio

The Conservative Income Portfolio is designed for investors who need reliable income with minimal risk to principal. It combines investment-grade bonds, inflation protection, high-yield dividend stocks, and preferred shares to create multiple income streams.

Historical Context

This allocation mirrors the approach used by many endowments and foundations that must distribute income annually while preserving the endowment's purchasing power.

Who It's For

Retirees, endowments, and ultra-conservative investors who prioritise capital preservation and income over growth.

Build This Portfolio Free

Create your account and start tracking the Conservative Income Portfolio with real-time analytics.

Get Started Free