As if in answer to some of the issues I have been posting on retirement income, Fidelity and Vanguard have just announced a simplified wayto draw down your mutual fund net worth during retirement. They are somewhat like fixed term variable annuities but with an attempt to pay out a fixed monthly income. In other words they are not guaranteed either in amount or for life, but will help you level out your monthly income by withdrawing both income and some part of your principal. Also unlike annuities is the feature that if you die before you have wihdrawn everything, your heirs will have something left.
Fidelity has quickly put up a decent website section on these new funds: http://personal.fidelity.com/products/funds/funds_frame.shtml.cvsr
I'm sure Vanguard won't be far behind. Warketwatch.com has an introductory post today by Robert Powell on the subject: http://www.marketwatch.com/news/story/retirement-income-products-reduce-guesswork/story.aspx?guid=%7B00FBB2C1%2DA77E%2D48D0%2D96B4%2D8D09F961ECEA%7D
This is a good development, at least in concept, and I will be posting more later on.
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