Where Should Income Investors Go For Greater Returns in Era of Low Bond Yields?

Rebalance IRA Adds “Preferred Stock” To Its Income Portfolio To Reduce Volatility and Interest Rate Risk

Editors’ note: Princeton economics professor Burton Malkiel, author of the classic investment book, “A Random Walk Down Wall Street,” is available for interviews about this new addition to Rebalance’s income portfolio.

Bethesda, MD, Sept. 26, 2017 – With interest rates at historic lows, investors have been searching for better returns than today’s current meager bond yields. Through thoughtful, sophisticated analysis, Rebalance has found the secret: It has turned to the nation’s best finance minds to devise an alternative approach to produce greater returns and less risk for income investors seeking stability.

Rebalance, a leading consumer-oriented investment firm, has taken the unconventional step of adding “preferred stock” to its already stellar Income Portfolio, making the current SEC 30-day yield a 4.17 percent return compared to a typical 1.27 percent return for an average income portfolio.

“In a world in which bonds fail to provide satisfactory returns, what’s an investor to do to get steady income and low risk? We believe adding preferred stock to an income portfolio will pay off by offering moderate volatility,” said Burton Malkiel, a highly respected Princeton economics professor and member of the Rebalance Investment Committee. “Preferred stock is a superior source of income to meet long-term return objectives, offers broader asset class diversification and is well-positioned for future changes in interest rates since higher interest rates will improve the credit quality of the bank preferreds that make up the majority of the portfolio.”

Rebalance’s Investment Committee, consisting of some of the nation’s top investing experts, added a low-cost, exchange-traded fund of preferred stock to its Income Portfolio to boost its already compelling return and reduce risk.

“These have been bleak years for income investors,” said Mitch Tuchman, managing director and chief investment officer at Rebalance. “No one has known where to put their money and earn a decent return with interest rates at 35-year lows and inflation eating away at a portfolio’s value. Preferred stock will prudently generate higher returns while lowering risk. Ultimately, that means more money for people’s retirement.”

Preferred stock is a hybrid security that usually pays a fixed dividend like bonds but also represents ownership in a company like stocks. They generally offer superior yields to bonds and common-stock dividends, and they tend to be less volatile than common stocks.

In addition to preferred stock, Rebalance’s Income Portfolio includes emerging market bonds, U.S. high-yield corporate bonds, U.S. corporate bonds and U.S. high-yield dividend stocks.

About Rebalance

Rebalance is one of America’s leading investment firms that is at the forefront of providing consumers with a fundamentally different and better set of retirement investment options: lower costs, “endowment-quality” globally-diversified retirement investment portfolios, and systematic rebalancing. This investment approach is combined with a team of sophisticated and highly credentialed finance professionals who provide advice that is unbiased and focuses on the client’s long-term retirement investment goals.

The Firm’s Investment Committee is anchored by three of the most respected experts in the finance world: Princeton Economics Professor Burton Malkiel, author of the classic investment book, A Random Walk Down Wall Street; Dr. Charles Ellis, the former longtime chairman of the Yale University Endowment; and Jay Vivian, the former Managing Director of IBM’s $100+ billion in retirement investment funds for more than 300,000 employees worldwide.

Rebalance’s innovative, pro-consumer approach to retirement investing has garnered high profile coverage. The Firm, and its leadership, regularly have been featured in The New York Times, The Wall Street Journal, NPR, Fox, PBS, Forbes, USA Today, CNBC, Nightly Business Review, CBS, The Washington Post, The Economist, and a wide range of other national and local media. Managing Directors Scott Puritz and Mitchell Tuchman are acknowledged industry thought leaders, and Mr. Puritz recently testified before a U.S. Senate Committee evaluating the U.S. Department of Labor’s new fiduciary rule.

Rebalance is headquartered in Palo Alto, Calif. and Bethesda, Md., and currently manages more than $500 million of client assets. For more information, visit www.rebalance-ira.com.