An efficient portfolio typically focuses on both income and price returns, said certified financial planner David Blanchett, head of retirement research at PGIM, the asset management arm of insurer Prudential Financial.
"It really depends on that retirees' perception of how they're going to access their savings to fund their retirement spending," Blanchett said.
Higher yields are doing the heavy lifting Generally, the rule of thumb is to withdraw about 4% of your portfolio a year during retirement.
His firm uses the Dodge & Cox Income (DODIX) fund and BlackRock Strategic Income Opportunities (BSIIX) fund.
"If you have a diversified portfolio, in theory, you can actually get higher income over time as the companies that you own pay out higher dividends," he said.
Persons:
David Blanchett, who's, Blanchett, Barry Glassman, Glassman, Brandon Goldstein, " Goldstein
Organizations:
Prudential Financial, Treasury, Wealth Services, CNBC, Dodge, Cox, Prudential
Locations:
PGIM, North Bethesda , Maryland, BlackRock