Income can refer to cash flow derived from a variety of sources, including personal earnings, investment earnings, businesses or even real estate. These forms of income are generally referred to as earned income. There are also sources of unearned income, particularly when discussing investments. Dividends, capital gains and interest are common examples of unearned income.
Advisor Perspectives just published the first in a series of articles from Wade Pfau. These pieces are important and should be read by anyone considering guaranteed lifetime withdrawal benefits or any of the other optional...
Duration is a measure of the time associated with cash flows or payments from a bond. Duration measures the amount of time (in years from the purchase date) required for a bond owner to receive interest and principal payments that are equal to the cost of the bond.
Long duration bonds have payments that are spread-out over a relatively long period of time (e.g...
The CFA Institute just held its 2012 fixed income conference in San Francisco.
Speakers shared a very broad range of perspectives on fixed income issues over the course of about a dozen sessions.
Session notes and observations (in no particular order) include:
Demographics and Deleveraging -- Rick Rieder, Blackrock
The Best Idea in Light of Demographic and Fiscal Challenges -- Scott Simon, PIMCO
...
Conventional financial wisdom says that bonds should comprise an increasing percentage of a portfolio as the owner ages and heads into retirement.
In theory, a retiree’s need for income and a reduced tolerance for risk are the main drivers of the larger allocation to bonds.
A key consideration, though, is whether bonds are the best or “optimal” way to address lifetime income needs and the reduced appetite for...
