Quote from article:"The goal is to have cash flows available to meet spending needs as required, and investments are chosen in such a way that meets those needs. Assets are matched to goals so that the risk and cash flow characteristics are comparable."
For essential spending, Modern Retirement Theory argues that funding must be with assets meeting the criteria of being “secure, stable, and sustainable.” Funding options can include defined-benefit pensions, bond ladders, and income annuities. In this regard, another important aspect of the investment approach for the safety-first school is that investing decisions are made in the context of the entire household balance sheet."
Bonds, annuties, DB Pensions...No mention of Dividends or Dividend Growth which would achieve the stated goal!
For essential spending, Modern Retirement Theory argues that funding must be with assets meeting the criteria of being “secure, stable, and sustainable.” Funding options can include defined-benefit pensions, bond ladders, and income annuities. In this regard, another important aspect of the investment approach for the safety-first school is that investing decisions are made in the context of the entire household balance sheet."
Bonds, annuties, DB Pensions...No mention of Dividends or Dividend Growth which would achieve the stated goal!