• What is our Blackrock Target Income Portfolio?

    Last Updated: September 13, 2017 9:41AM EDT
    The income portfolio is comprised of only bond ETFs. The portfolio is suited for an investor who is looking to generate a steady stream of income. 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 bonds, such as the Betterment portfolio. 
     
  • How is the Income portfolio different from the Betterment portfolio?

    Last Updated: September 13, 2017 9:41AM EDT
    The Betterment portfolio seeks to deliver both income and capital gain. The BlackRock Target Income portfolios are designed for those in retirement or those seeking investment income while minimizing capital losses. Customers can select from four income portfolios at varying levels of risk.
     
    The best way to think about this is in comparison to the Betterment portfolio. The Blackrock Target Income Portfolio is not as concerned about picking investments that will grow over time. It focuses on investments that seek to generate income.
     
    A far greater share of the the Betterment portfolio’s returns come from capital appreciation. The Betterment portfolio can still earn income (dividends), but likely not as much as the Income Portfolio.
     
  • Why are we only using bonds?

    Last Updated: September 13, 2017 9:41AM EDT
    There are many ways to implement an income portfolio. Some of those ways include adding dividend producing equities. The Blackrock Target Income Portfolio does not because it wants to keep the volatility low. Even long-term and high-yield “junk” bonds have historically had approximately half the risk of large cap equities. 
     
  • How do I receive the income generated from the portfolio?

    Last Updated: September 13, 2017 9:41AM EDT
    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.
     
  • How frequently is income paid from the portfolio holdings?

    Last Updated: September 13, 2017 9:42AM EDT
    Most income is paid on a monthly basis, but it can be quarterly depending on the fund.
  • Will TLH and TCP work for the income portfolio?

    Last Updated: September 13, 2017 9:42AM EDT
    TLH and TCP will not work with this portfolio. This is because TLH requires volatility to harvest a lost, and bonds are not as volatile as stocks. TCP requires high growing assets to produce meaningful alpha, and bonds have lower long-term returns than equities.
     
  • What is the difference between BlackRock Target Income Portfolio and Betterment’s Retirement Income strategies?

    Last Updated: September 13, 2017 9:42AM EDT
    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 BlackRock Target Income portfolio’s primary mandate is to generate income for investors, without much consideration regarding growth and appreciation of principal. 
     
  • How frequently will the portfolio be updated?

    Last Updated: September 13, 2017 9:42AM EDT
    Generally 4 to 6 times per year. 
     
  • What funds are being used in the Blackrock Target Income portfolio?

    Last Updated: September 13, 2017 1:27PM EDT
    For more information on the construction of the portfolio strategy, please click here.
  • Can you use these strategies if you’re affiliated with a broker-dealer?

    Last Updated: September 13, 2017 9:42AM EDT
    Currently, you are not able to invest in additional portfolio strategies if you are affiliated with a broker dealer. 
     
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