A recent Bloomberg article tells me that the secret is getting out. As readers have heard over and over from me, period certain fixed income with DCF Income Payments outshines other fixed income assets and creates a floor level of income, allowing remaining assets to be invested for more potential growth. When freed from the pressures of systematic withdrawals, equity allocations can potentially produce more long-term portfolio value.

This article (link) talks about how bonds have underperformed for a long time and how retirees who can “stick it out” in equities end up better off.

While this may be true, it neglects a critical component of fixed income… safety.  Many people want principal protection and like the safety afforded by fixed income assets, and that’s where DCF income payments really shine.  So I agree- skip the bonds, but keep the safety, by using DCF Income Payments.

We have some of the safest insurance companies on the planet backing our period certain guaranteed payment streams. Used wisely, these fixed income assets can anchor your portfolio, cover your income needs, and afford you greater leeway to invest your remaining assets.

In sum, buy fixed income from DCF and invest the difference.

After the beating they’ve taken in bonds over the last two years, investors could be forgiven for wondering if it was ever a good idea to rely on fixed income in the first place. Now there’s new research that validates such suspicions, and upends some serious conventional wisdom when it comes to building that retirement nest egg. A group of academics set out to test the old chestnut about how a diversified portfolio of bonds and stocks is the best way to save for the future. What they found was that a mix of half domestic, half international equities actually beat blended portfolios in both money made and capital preserved. With fixed income suffering subpar returns amid the Federal Reserve’s monetary tightening, some have argued traditional investing advice needs a rethink. “As long as the equity investors are able to stick it out,” says study co-author Scott Cederburg at the University of Arizona, “they end up being better off with very high probability than somebody who’s trying to smooth out those short-term movements by diversifying into bonds.”