Learn about Bonds

Bonds have always been used to anchor retirement income and help protect principal in portfolios.

Unfortunately, safe bond yields (meaning what you get paid for buying bonds) are so low they don’t even keep up with average inflation. Investors that buy US Treasuries today get principal protection at the price of reduced future purchasing power.

Say what? Think of like this. Buy $10,000 of the US 10 Year Bond. In 10 years you are guaranteed to get your $10,000 back. In between now and then, the bond will pay you approximately $66.20** per year for your investment!

Inflation may be lower right now, but historically it averages about 3%. That means the hamburger that cost you $1 today may cost you $1.34 in 10 years, but each dollar you put into the bond for income may only be worth $0.66 cents in 10 years. So, the $0.185 cents in income you collected on that bond purchase over 10 years actually cost you $0.34 cents in purchasing power when your bond matures.

inflation falling dollar

So while numerically you put $10,000 in and you are getting $10,000 out, in terms of what you use those dollars for (buying food, fuel, mortgages) you may only get $6,600 back in 10 years.

If your stockbroker came to you and said “Let’s buy Stock X for $100 that is going to pay you 1.85% for the next 10 years, but it’s probably only going to be worth $66 or so in 10 years,” would you buy it?

Of course not. And yet, people buy US Treasuries every day instead of looking for more reasonable alternatives. Most financial advisors tell them it’s a good idea because they are really salespeople, not planners, and they don’t know any better.

Either way, it’s a losing proposition for retirees.  CLICK HERE to see a recent case study on Bonds.

Want to learn more about bonds?  Click to learn about TYPES OF BONDS.


Questions? Ask a question with the contact button or the form at the right.

Need help finding an income solution that fits?  CLICK HERE to have a planner compare possible solutions for you.


** US 10 Year rate as of June 2020

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Investment Management

For ACI, investment management begins with understanding and actively managing risk for our clients and partners.  We do this through smarter investments built on low cost, highly liquid and diversified investments rather than expensive financial products.


Understanding the needs of investors seeking stable results for portfolios greater than $500,000 is a core strength of ACI.  One of the most important things we do is help your investments to create stable income while generating sufficient growth to meet your future demands and the needs of those you care for. 

ACI uses customized planning and software to create retirement income plans to meet the specific needs of each of clients while providing confidence, flexibility, and cost efficiency.


Success in any endeavor comes from hard work, vision, and planning. We can help you create a more confident future by working with you, your CPA, your tax and estate counsel to make sure that when the tomorrow becomes today, you are where you want to be.

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Market Income

This portfolio invests in a basket of highly liquid Index or Sector securities and sells off atypical returns in exchange for a premium on a rolling basis. That’s a fancy way of saying we take the bird in hand and let someone else have the two in the bush.  We buy sectors that are undervalued relative to the rest of the market or vs. their historical value ranges which reduces downside risk vs. the broad market.  Typically out-performs in bear markets, neutral markets and mild bull markets, and under-performs strong bull markets.

Core Equity

Invests in diversified components of the financial markets and broad economy by targeting sectors which demonstrate the greatest potential for a consistent range of multi-year returns, while offering a risk adjusted investment profile equal to or lower than the broad markets.  Our research tells us which sectors demonstrate the greatest potential for consistent multi-year returns while offering greater risk efficiency than the broad markets.  We invest on an “Outcome Oriented” basis – meaning we have a good idea what the returns over time will be at a given purchase price.

Durable Opportunities

This portfolio invests in companies possessing a Durable Competitive Advantage.  Such companies are likely to be around for decades, easing the concern of principal return.  DCA companies often suffer less in bear markets and usually lead recoveries.  These companies allow ACI to build portfolios with minimum expected returns that can be in the mid-single digit range over any 3-5 year period which can provide long term stability partnered with long term growth in equity.

Full Cycle

This portfolio is derived from the ground breaking work in ‘risk parity’ by Ray Dalio, arguably one of the top 10 money managers in history and founder of Bridgewater Associates.  The Full Cycle portfolio is built on the allocation models Ray designed to provide the highest potential risk adjusted returns possible through all phases of the economic cycle.  Bridgewater’s “All Weather” fund was designed for pension funds and other large institutional investors that needed to earn stable returns with stable risk, and has been closed to new investors for years.  At the time the fund closed, the All Weather Portfolio had a minimum required investment of $100 million.

Equity Builder

This is a risk management overlay which helps build and protect accounts by collecting small premiums against held positions on an opportunistic basis during correcting markets through synthetic “short” positions.  EQB seeks to collect an extra 2% – 5% per year against the cost of underlying investments.  While primarily targeted at increasing account equity, EQB gives an extra layer of protection to capital during periods of higher volatility.

Fixed Income

Diversified, broad exposure to fixed income ETFs and best of breed no load funds including core fixed income components such as Government, Corporate or MBS, municipals, and unconstrained “Go Anywhere” funds.

Investment Team


Dak Hartsock; Investment manager with over 15 years of experience with securities & securities options. Dak has worked full time in the financial markets since 2007. He has more than a decade of operating experience as a business owner & developer. He is a graduate of the University of Virginia.

Robert Hartsock; MBA. Bob has over 30 years of senior management experience in diverse markets, products and businesses. He brings an exceptional record that includes management roles in two Fortune 500 companies and leadership of 7,500+ employees. Bob’s career features a specialization in identifying and fixing management and operational problems for multiple companies including leading over a dozen acquisitions, private placements and a public offering. He is uniquely positioned to provide ACI with highly relevant C-Level management perspective. Bob provides operational & macro perspective on investments ACI undertakes for client portfolios. Bob holds degrees from University of Illinois and University of Washington.

Process Portfolios is a dba of ACI Wealth Advisors, LLC.

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