Retirees are often adverse to withdrawing more than the income the portfolio generates on an annual basis. While generating income is important for retirees, it is even more important to manage risk. Limiting volatility is the single most important aspect of a portfolio for a retiree, as it increases the probability that you will be able to afford the retirement lifestyle you have planned for. The below video does an excellent job explaining the additional risk involved in securities with higher yields.
Here at Mendel Money Management, we design retirement portfolios to balance income, risk, and volatility in order to increase your comfort during retirement.