Our goals-based retirement income strategies aim to take the guesswork out of hitting your client’s target distribution rate.
DESIRED OBJECTIVE:
Spend
PRIMARY RISK:
Longevity
DEFINED BY:
Distribution Need
In our experience, retirees often ask “Will my retirement savings last long enough to support my lifestyle?” Real Spend® was designed with this concern in mind.
Real Spend® is designed to meet the needs of today’s retirees: current income, asset preservation, and portfolio growth during what may be a long retirement.
It’s an income strategy that doesn’t depend on traditional fixed income strategies to address longevity and shortfall risks.
An equity-tilted portfolio that aims to generate returns to replenish the distribution component
Disciplined, automated, algorithmic portfolio risk mitigation that seeks to limit catastrophic loss
A multi-year reserve of liquid assets to provide systematic income distributions
Generating goals-based income with an equity-centric, globally diversified portfolio. Memo to retirees seeking sustainable spending power: Consider sticking with stocks. One of our core beliefs
Generating goals-based income with an equity-centric, globally diversified portfolio. Memo to retirees seeking sustainable spending power: Consider sticking with stocks. One of our core beliefs
In this stage, we seek to grow wealth while being mindful of volatility.
In this stage, we seek to mitigate drawdown risk, while continuing to grow assets.
The Real Spend®️ retirement income strategy is NOT A GUARANTEE against market loss and there is no guarantee that the Real Spend®️ strategy chosen by an investor will be successful for the entirety of an investor’s retirement. Clients may lose money. Real Spend®️ is an asset allocation strategy that uses an investment model to (i) plan savings amounts and overall asset allocation during the distribution phase of retirement planning, (ii) compute target retirement wealth, assuming a retirement budget and a spending-investment strategy after retirement, (iii) compute the transition from the accumulation phase to the retirement phase, and (iv) generate the spending-investment strategy after retirement. Our retirement spending investment strategy uses an allocation model that replenishes cash needed for withdrawals. Before investing, consider the investment objectives, risks, charges, and expenses of the strategy. All investing involves risk. This strategy is not an insurance product with payments guaranteed. It is a strategy that invests in marketable securities, any of which may fluctuate in value. There is a possibility of outliving the assets if market performance is lower than forecasts used in planning, or if longevity is longer than anticipated. Calculations used with investors are estimates based on historical market behaviors, and there is no assurance that these behaviors will be repeated in the future. Investors should note that historical data suggests that higher Spend Rates will have a lower likelihood of success for the entirety of the retirement period than a lower Spend Rate would. Past performance and market data are no guarantee of future results and investor experiences will vary.
