If you retired at age 65, would your retirement assets last at least 18.5 years? This is how long the average 65–year–old can expect to live, which means that many people in this age group could live much longer and will need their assets to last two or more decades.
If you are concerned about the ability of your investments to generate an adequate retirement income that will last throughout your lifetime, you might want to consider investing some of your assets in mutual funds.
Mutual funds pool money from shareholders and invest in assets that may include stocks, bonds, and money market instruments to seek the fund’s stated objective. Some mutual funds are designed specifically to generate income.
The makeup of an income fund is generally high–quality corporate bonds, lower–grade bonds, dividend–paying stocks, or a combination of the three. Growth and income funds often invest in companies that seek earnings growth while also offering dividends. These funds generally involve greater risk but also offer the potential for income.
Of course, mutual fund shares fluctuate with market conditions and may be worth more or less than their original cost when redeemed.
Mutual funds are sold only by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.
Many people are using mutual funds to supplement their cash flow. Call today to discuss how mutual funds can help generate an income stream for you.
