BlackRock Target Income Portfolio

The BlackRock Target income portfolio is comprised of only bond ETFs. The portfolio is suited for investors who are looking to generate a steady stream of income. It can also be an alternative to a cash account for those that are willing to take on some risk to potentially generate and reinvest yield. To put this into context, the portfolio seeks to generate bond interest from the funds periodically, at a rate that is generally higher than a portfolio that includes both stocks and bonds, such ...

The Betterment Core portfolio seeks to deliver both capital appreciation and preservation depending on the risk level the customer is in. The BlackRock Target Income portfolios are designed for those in retirement or those seeking investment income while minimizing capital losses. It can also be an alternative to a cash account for those that are willing to take on some risk to potentially generate and reinvest yield. Customers can select from four income portfolios at varying levels of risk. ...

Income generated by the portfolio will be automatically reinvested. You can always set up a recurring withdrawal of the approximate amount of the income yield your portfolio earns. Most income is paid on a monthly basis, but it can be quarterly depending on the fund.

The Betterment Retirement Income strategy draws down on principal. Betterment’s Retirement Income strategy is a total return approach that focuses on income generation and growth. The BlackRock Target Income portfolio’s primary mandate is to generate income for investors, without much consideration regarding growth and appreciation of principal.

To learn more about the BlackRock Target Income portfolio, please visit https://www.betterment.com/blackrock-target-income-portfolio.

There are many ways to implement an income portfolio. Some of those ways include adding dividend producing equities. The BlackRock Target Income portfolio does not because it wants to keep the volatility low. Even long-term and high-yield “junk” bonds have historically had lower risk than large cap equities. While bonds are substantially less volatile than stocks, investing in bonds is not without risk.

The BlackRock Target Income Portfolio Strategy is generally updated 4 to 6 times per year.

Tax Loss Harvesting+ (TLH) and Tax Coordination will not work with this portfolio. This is because TLH+ requires volatility to harvest a lost, and bonds are not as volatile as stocks. Tax Coordination requires high growing assets to produce meaningful alpha, and bonds have lower long-term returns than equities.