Diversified Income Model Portfolio
Built to generate cash flow, not just growth.
10+ years (income now)
~20–30%
Retirees drawing income, investors approaching retirement, and anyone who values a steady distribution stream over maximum appreciation.
Why This Allocation
An income portfolio optimizes for yield and stability rather than pure growth. Dividend-paying stocks and REITs provide an equity yield stream that has historically grown faster than inflation, while the bond sleeve contributes steady coupon income. The 10% cash allocation gives you a year or more of spending buffer, so you never have to sell into a downturn to fund living expenses. The tradeoff is that income stocks and high-yield bonds are not a free lunch — they carry equity-like risk while capping upside.
Best for
- Retirees who need distributions to live on
- Investors who value cash flow over appreciation
- Smoothing withdrawals during market downturns
Things to Consider
- Yield chasing can expose you to equity-like risk
- Interest-rate changes move income assets too
- Total return may trail a growth portfolio
Related Reading
Model portfolios are educational reference examples of common allocation strategies. They are not personalized investment advice. Your optimal mix depends on your individual age, income, goals, tax situation, and tolerance for risk.
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