Yields declined sharply in 2020 as the Federal Reserve lowered interest rates in response to the pandemic. Though interest rates have jumped recently, in December 2020 the 10-year Treasury bond yield was stuck below 1%.
For total-return-minded retirees using a bucket strategy, however, watching already-meager interest rates head down even further is a nonevent. That s because trimming appreciated holdings, especially stocks, can provide cash flows for bucket investors even as income distributions slow to a trickle. In off years for rebalancing, a cash bucket can serve as a buffer, providing cash flows and staving off the need to withdraw from assets when they re down.
The following is our latest Fund Analyst Report for Pimco RealPath Blend series.
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The Pimco RealPath Blend target-date series has a skillful manager at the helm who works jointly with Pimco’s well-regarded investment committee. They bring together exceptional funds across asset classes while effectively balancing passive equity and active bond exposures, meriting an inaugural Morningstar Analyst Rating of Gold for the series’ cheapest share class. Its more-expensive share classes earn Silver or Bronze ratings.