Retirement Income Portfolio

Designed to generate steady income while preserving capital in retirement.

Allocation Breakdown

4 Assets

Bonds

Dividend Stocks

REITs

Cash/Short-Term

Target Allocation

Asset Class	Weight	Example Ticker
Bonds	40%	AGG
Dividend Stocks	30%	VYM
REITs	15%	VNQ
Cash/Short-Term	15%	SHV

Risk Level

Low

Rebalance Frequency

Quarterly

Advantages

Steady income generation
Low volatility
Capital preservation focus
Multiple income sources

Disadvantages

Limited growth potential
Inflation risk over long retirements
REIT sensitivity to interest rates
May not sustain high withdrawal rates

About This Portfolio

The Retirement Income Portfolio prioritises income generation and capital preservation. With a heavy allocation to bonds and dividend stocks, plus REITs for additional yield and a cash buffer, it's designed to fund retirement withdrawals without depleting the portfolio.

Historical Context

The "4% rule" — withdrawing 4% of your portfolio annually — was derived from research by William Bengen in 1994. This portfolio's income-focused design supports sustainable withdrawal rates.

Who It's For

Retirees and near-retirees who need their portfolio to generate reliable income with low risk of capital loss.

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