TY - JOUR T1 - Asset Allocation for Retirement Income: A Framework for Income-Oriented Investors JF - The Journal of Portfolio Management SP - 127 LP - 141 DO - 10.3905/jpm.2023.1.458 VL - 49 IS - 4 AU - Steve Sapra AU - Sean Klein AU - Rene Martel Y1 - 2023/02/28 UR - https://pm-research.com/content/49/4/127.abstract N2 - Certain investor types, particularly those approaching or in retirement, care about the income properties of investment portfolios. This article addresses the income characteristics of equities and bonds and provides a framework for building multi-asset portfolios with varying degrees of income orientation, both ex post, investigating the historical income behavior of equities and bonds, as well as through a forward-looking lens, based on today’s much lower dividend and bond yields. Because bond yields and prices are inversely related, bonds imbed a natural time-diversification property across the two dimensions that income-oriented investors care most about: portfolio income and expected wealth. Despite the long-term growth potential of equity income and the prospect for higher bond yields over the next several years, we still find that a meaningful allocation to bonds is likely optimal for investors with an orientation toward organic portfolio income. ER -