Faculty Publications

Title

Why Bond Funds Don’t Belong In Retirement Portfolios

Document Type

Article

Publication Date

8-4-2015

Abstract

Income annuities provide payments precisely matched to a client’s longevity while stocks provide opportunities for greater investment growth. The question remains whether clients should hold bond funds in their retirement income portfolio. To answer that question, I will first look at the role income annuities play in a retirement plan and then see whether bond funds can fulfill that need equally well. I will use the term income annuities to include single-premium immediate annuities (SPIAs) and other similar products, some of which provide inflation protection.