This figure compares the total return approach to an income-focused approach in terms of portfolio construction. The total return approach starts with the investor’s goals and risk tolerance, which then informs the asset allocation, and then the investor can spend sustainably from both the yield and capital return. The income approach starts with the investor’s yield target, which informs the asset allocation; however, this may lead to an inappropriate risk exposure. The income approach does not start with the investor’s risk tolerance and goals and can lead to unintended portfolio risk exposures. The content is meant to show the differences in the process of the total return approach compared with the income approach.