Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Fido Pitches Simplification Via New Retirement Friendly Funds Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, June 12, 2017

Fido Pitches Simplification Via New Retirement Friendly Funds

Reported by Sophie Alexander

As millions of baby-boomers are reaching retirement age, Fidelity Investments is launching a mutual fund suite that addresses required minimum distribution (RMD) obligations. The Fidelity Simplicity RMD Funds are designed for investors nearing the age of 70 and a half— that's the age at which Americans are required to begin withdrawing from tax deferred retirement accounts.

Ken Hevert
Fidelity Investments
SVP of retirement
"Retirees often struggle to understand when, which assets, what amount and how to take the annually mandated withdrawal from their tax-deferred retirement accounts," states Ken Hevert, senior vice president of retirement at Fidelity. "If not done correctly, investors may experience a 50% tax penalty on any amount not withdrawn by the annual deadline," he goes on.

Fidelity's new RMD Funds intend to address these concerns by combining age-appropriate investment strategies with an automated payment method. After investing in an RMD Fund, the team at Fidelity automatically calculates and distributes the customer's RMD every year. There are several funds that investors can sign up for depending on their age. For example someone who turned 70 and a half in 2015 would sign up for the Simplicity RMD 2015 Fund. The funds also use glide paths to personalize portfolios over time.

"We’re really excited launching this because it’s innovative and we see it solving a problem that many of our customers face as they approach retirement age," Andrew Dierdorf, PM on the RMD Funds, tells MFWire.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use