BHK - Retirement Income (Part 3): Here Is How I Am Building My Retirement Income Fund

July, 09 2018 02:57 PM Blackrock Core Bond Trust

I. Key Principles and Decisions on Which This Portfolio Is Based:

Create a "buy and hold" portfolio that does not require frequent attention.
Create income exclusively, avoiding a reliance on capital appreciation for any portion of the return.
Focus on avoidance of capital impairment through interest rate-maturity-duration risk.
Accept that Decision 3 leaves a choice between accepting default risk or lower return, balancing those elements carefully
Use as a design basis the premise, even as, we are near interest rate lows, that we have moved past the low points of interest rates across the duration