Putnam Investments is addressing the need for customized retirement income withdrawal strategies through the launch of the Putnam Retirement Income Lifestyle Funds, a suite of three income-oriented mutual funds, and a Retirement Income Analysis Tool.
“The biggest hurdles Americans face in securing a quality retirement is first accumulating sufficient assets and then ensuring that those assets generate sustainable income for life,” said Robert L. Reynolds, president and chief executive officer of Putnam. “Putnam is offering the marketplace a thoughtful and intuitive approach that tries to provide a solid and sufficiently long runway for people to experience a dignified, financially secure retirement after a lifetime of working.”
The Lifestyle 1, Lifestyle 2 and Lifestyle 3 retirement income funds include a mix of domestic and international equities, convertible and fixed income securities as well as the Putnam Absolute Return Funds. The Lifestyle 1 fund is the new name of the Putnam RetirementReady Maturity Fund and is a conservative fund that seeks to preserve capital while generating income. The Lifestyle 2 fund takes a more moderate approach to generate “income consistent with prudent risk,” Putnam said, while the Lifestyle 3 fund is the most aggressive, in that it, too, seeks income but also capital growth. This is the newly named Putnam Income Strategies Fund.
The Retirement Income Analysis Tool is based on income needs, life expectancy, risk tolerance, legacy goals and other key financial variables.
Putnam will be selling the funds through defined contribution plans s well as standalone solutions for investors and their advisers.
--This article first appeared on Money Management Executive