Morningstar Investment Services is offering three managed account services to provide investors with retirement income at three levels of risk and time ranges.
Called Morningstar Managed Portfolios Retirement Income Series, it will be offered exclusively through financial advisers.
The service will target investors in various stages of retirementshort range, mid range and long rangewith annual cash flows of 4%, 5% and 6% of their initial assets, and invest in a variety of securities including alternative investments, global fixed income, high-yield bonds, commodities and absolute-return.
According to the U.S. Census Bureau, nearly 8,000 Americans are turning 65 each day, said Bill Harding, director of research for Morningstar Investment Services. Our suite of retirement income investment solutions addresses the specific needs of retirees, specifically how to generate a cash flow stream over an investors expected time horizon in retirement and protect against the risk of outliving assets.