Target Income Portfolio

The Target Income built with BlackRock 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 ...

The Betterment Core portfolio seeks to deliver both capital appreciation and preservation depending on the risk level the customer is in. The Target Income built with BlackRock 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 ...

Available 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 Target Income built with BlackRock portfolio’s primary mandate is to generate income for investors, without much consideration regarding growth and appreciation of principal.

There are many ways to implement an income portfolio. Some of those ways include adding dividend producing equities. The Target Income built with BlackRock portfolio does not because it wants to target lower volatility than equities. Even long-term and high-yield “junk” bonds have historically had lower risk than large cap equities.

The Target Income built with BlackRock Portfolio Strategy generally updates 4 to 6 times per year, depending on the market environment.

Tax Loss Harvesting (TLH) is not available with this portfolio. This is because TLH requires volatility to harvest a loss, and bonds are not as volatile as stocks. Tax Coordination (TCP) is supported with this portfolio.