Markets & Economy

 

Spending from your portfolio: Total return versus income

April 15, 2013
 
 

Strategies to take income in retirement

Low bond yields have investors concerned about insufficient income when they retire. Sarah Houston of Vanguard Flagship Services® and Ken Volpert of Vanguard's Fixed Income Group present a creative strategy  to meet those needs: Spending down some of a portfolio's total return—dividends plus price change—which increases in value when bond prices are up.

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Notes:

  • All investments are subject to risk, including the possible loss of the money you invest.
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  • Bonds and bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments.
  • High-yield bonds generally have medium- and lower-range credit quality ratings and are therefore subject to a higher level of credit risk than bonds with higher credit quality ratings. Diversification does not ensure a profit or protect against a loss.
  • This webcast is for educational purposes only. We recommend that you consult a financial or tax advisor about your individual situation.