Strategies for
distribution-stage investing

Goals-based retirement income strategies that take the guesswork out of hitting your client’s target distribution rate 

The Horizon Investments goals-based wealth curve

Position your clients’ wealth to achieve their goals and manage risks at each investment stage — helping them fund a long and active retirement

STAGE

GAIN
Seek to manage volatility risk and maximize capital growth

Goal:
Grow wealth

STAGE

PROTECT
Seek to manage drawdown risk and continue to grow assets

Goal:
Protect wealth

STAGE

SPEND
Seek to minimize shortfall risk and consistently generate income desired

Goal:
Spend wealth (distribution)

Risk:
Longevity

Strategy:
Real Spend®

Objectives:

  1. Target exposure to global equity and fixed income markets
  2. Mitigate unrecoverable losses during turbulent periods

Looking for a retirement income solution that can scale across all of your clients?

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For illustrative purposes only.

What if you had a better way to generate income while making wealth last?

Retirees are living longer, maintaining robust lifestyles, and seeking to leave a legacy for the people and causes they care about. To reach investors’ goals, we believe modern retirement income solutions must prioritize both asset preservation and capital growth.

Real Spend® is engineered to strike this balance.

The strategy automatically shifts assets from the equity portion of the portfolio to a spending reserve, to support your client’s desired distribution or spend rate.

BENEFITS

Don’t leave your bucket strategy to chance or let clients run out of money

Allocate to equities across investment stages

We believe equities are the most effective asset class for helping investors achieve their goals throughout their lives. Horizon Investments’ focus on distribution-stage equity investment is designed to:

Automate and scale your bucket strategy

Using Horizon’s investment planning software you can easily determine your client’s target distribution rate, select the Spend portfolio designed to hit that rate, and run different scenarios to measure the likelihood of success.

ADVANTAGES

Traditional retirement income solutions may not be enough

A fixed income tilt can be a recipe for underfunding retirement

The typical approach — tilting to a conservative fixed income portfolio as clients enter retirement and focusing on asset preservation as investors spend down — may not be enough to fund retirement and legacy goals, especially in a long-term low-rate environment.

Traditional bucketing can be inefficient and imprecise

Requiring complex spreadsheets and a huge amount of effort, scaling a manual bucketing approach across all of your clients can be near-impossible.

Horizon retirement Portfolios

Five retirement portfolios designed to meet varying distribution targets for Spend-stage investors

7
79% equity
0% fixed income
21% spending reserve
6
74% equity
8% fixed income
18% spending reserve
5
68% equity
17% fixed income
15% spending reserve
4
62% equity
26% fixed income
12% spending reserve
3
55% equity
36% fixed income
9% spending reserve

For illustrative purposes only

Discover how to implement retirement income strategies with confidence

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