he Principal Financial Group
has launched a new mutual fund program, Path for Income
, designed to assist retirees and pre-retirees with managing retirement income. The program helps individual investors make the financial transition from the asset accumulation to the asset distribution stage of life.
Path for Income uses a three-step process of a lifestyle financial review to identify retirement income needs, an investment risk assessment to determine investors' attitudes toward risk and a series of five asset allocation models, designed by Ibbotson Associates
, intended to match their income needs and risk tolerance. The overall program has an income orientation to help ensure retirement assets can provide a comfortable level of income without being prematurely depleted. Path for Income investor assets can be proportioned among several different Principal Mutual Funds.
With a minimum $25,000 investment, Path for Income investors determine a monthly, semi-annual or annual withdrawal schedule to receive their income, as well as where the funds will be allocated, such as current banking accounts.
Path for Income Features
-- Ability to choose from a portfolio of professionally managed mutual
funds to best meet customer income needs and risk tolerance
-- Diversity in mutual fund management, both inside and outside managers
oversee Path for Income assets
-- Ability to control cash flow, with easy access to assets
-- Ability to monitor allocations and adjust approach as financial needs
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