Why Investors in Retirement May Want to Consider an Income Approach

As multi-asset income investors, we seek to help a wide range of clients meet their income needs. The benefits of an income-centric approach are especially relevant for investors as they enter retirement – and that’s especially true today. We bring that to life with two case studies.

Why an income-centric approach matters in retirement: The accumulation vs. decumulation distinction

First, meet dollar-cost-average “DCA” Jay. He’s in his early 40s, in the middle innings of his career with another roughly 20 years before retirement. He’s squarely in the ‘accumulation’ phase of his investment journey, contributing regularly to his savings. On the other hand, we have “Distribution Deb,” a recent retiree. Since she is no longer earning a salary, she is relying on income from her investment portfolio to meet her cost-of-living expenses (in addition to income from other sources like social security and an annuity).

proper portfolio

Now let’s see what types of portfolios may be appropriate for these two very different life phases: