COVID-19 Alert: Blue Water Capital Management, LLC is primarily working from home offices and using remote meetings, but can meet in-person as well.
If you have concerns about the markets, or would like to have us look over your investments, please feel free to contact us.

Specializing in retirement planning and personalized investment management.

Asset Class Adjustments

Asset Class Adjustments

By increasing your exposure to certain asset classes, you can increase the income from your portfolio. In the example below we reduce growth stocks for more value stocks and real estate, precious metals in favor of more hybrids (preferred stock and convertible bonds), and lower yielding bonds in favor of higher yielding ones.

  Core 60 Enhanced Income 60
Stocks: 60%    
US Large Growth 10.5% 5%
US Large Blend 10.5% 12%
US Large Value 10.5% 17%
US Mid/Small Growth3.5%1%
US Mid/Small Blend 3.5% 3%
US Mid/Small Value 3.5% 4%
Real Assets 6% 9%
International Core Equity 9% 8%
Emerging Markets 3% 1%
Alternatives: 3.5%    
Hybrids 2% 3.5%
Precious Metals 1.5% 0%
Bonds: 36.5%    
US Investment Grade Core 25% 24%
Global/International4% 6%
Inflation Protection 4% 1%
High Yield 2.5% 4.5%
Cash/CDs 1% 1%

The allocation is still diversified and well-balanced, but it has more of an income focus to it. The adjustments can be made portfolio-wide, as in the example above, or simply within a few asset classes.