The American Funds Retirement Income Portfolio Series can help you address the income and longevity needs of retirees while affording you time to focus on your practice. Discover how years of extensive fundamental research, a long-term track record, and the skilled investment experience of our Portfolio Solutions Committee come together to give you three turnkey portfolios — Conservative, Moderate and Enhanced — that help you focus on growth.
Portfolios seek to support different withdrawal rate ranges while maintaining as much of a retiree's initial investment as possible.
Portfolios differ in their mix of equities and bonds, allowing for variation in withdrawal rates and risk tolerances.
Portfolios benefit from the ongoing research and attention of the Portfolio Solutions Committee.
Retirees may be concerned with maintaining their lifestyles in retirement as they take withdrawals from their investments. The American Funds Retirement Income Portfolio Series strives to:
The Portfolio Solutions Committee used extensive research and modeling to determine the suggested annual withdrawal rate ranges for each of the three portfolios (as of April 25, 2024).
*Risk of loss, in this case, is defined as an increased exposure to equities, which can lead to greater volatility in the portfolio and potentially impact both withdrawal rates and whether overall assets invested will decline over time.
Each fund of funds is designed to address varying income needs and risk tolerances, and each has a suggested withdrawal rate range.
The suggested annual withdrawal rate ranges for the portfolios:
We built the American Funds Retirement Income Portfolio Series to help address the needs of investors nearing or in retirement.
These funds of funds are:
The American Funds Retirement Income Portfolio Series is monitored by the Portfolio Solutions Committee — investment professionals who collectively have deep experience managing funds to pursue investor objectives.
Retirement income portfolios are complex. The need for withdrawals often conflicts with a desire for capital preservation. Stock and bond market interplay — once reliable for its inverse correlation — has become more difficult to navigate in recent years.
That’s why the Portfolio Oversight Committee, the predecessor to the Portfolio Solutions Committee:
The seven seasoned investment professionals in the Portfolio Solutions Committee offer:
This article summarizes findings and insights into its ongoing program of research into retirement income trends and spending patterns.
Learn why focusing on real-life goals and real-world risks should be at the core of how you construct portfolios.
The order of the underlying funds is based on the Capital Solutions Group's assessment of each fund's volatility, based on the fund's historical standard deviation, objective and other factors.