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The Retiree’s Dilemma


The Baby Boomer demographic is roughly 75 million strong in the United States.  Over 10,000 turn seventy every day.  This large cohort will be demanding more income and less risk.


But interest income has evaporated.


Our High Income strategy was specially designed to address what we call The Retiree’s Dilemma.  The typical life cycle for individual investing starts with assuming the higher risk in stocks to build wealth and eventually transitioning to more bonds when safety and income become the priority.


Today, retirees at this point are facing interest rates at historically low levels that fail to generate the income needed in retirement.  This leaves an unattractive choice: stay invested in stocks and risk significant losses or move into bonds and fall short of the income needed.


To address this, we have constructed a portfolio that targets twice the yield of bonds with less than half the volatility of stocks.  Using a multi-asset class approach, we invest in a diversified portfolio of high income generating securities. The risk exposures that come with these holdings are offset by hedged positions correlated to them.  The result is a very high income stream and a low level of risk.