Spend Stage

In this stage, we believe most clients are focused on making sure their portfolios can generate distributions that may stretch over many years. This means the primary risk for clients is longevity, so portfolios should aim to reduce the risk of running out of money.

DESIRED OBJECTIVE:
Spend

PRIMARY RISK:
Longevity

DEFINED BY:
Distribution Need

Find out how to get started with Real Spend® in your practice.

Our Real Spend® portfolio strategies are managed to support a range of distribution rates through exposure to global equity and fixed income markets, while also seeking to mitigate losses during periods of market turbulence.

Inside a Real Spend® Nest Egg

FOR ILLUSTRATIVE PURPOSES ONLY

Real Spend® consists of three main components:

Investment Portion

An investment portfolio designed to generate returns sufficient to replenish the withdrawals from the spending reserve

RISK MITIGATION

Includes an active risk management strategy designed to help preserve retirement capital during sudden and severe market downturns.

SPENDING RESERVE

A multi-year reserve of liquid assets for spending on current and short-term needs and goals.

Learn about our other investment strategies.

GAIN Stage

In this stage, we seek to grow wealth while being mindful of volatility.

PROTECT Stage

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.