Charles Schwab has announced a new suite of funds designed to generate a targeted annual payout for retirees.


The Schwab Monthly Income Funds are comprised of three funds with varying annual payout targets to provide investors with an indication of projected annual income.


“The Schwab Monthly Income Funds are a simplified solution for people who want help replacing the income they left behind at work but have no desire to manage a portfolio of this complexity,” said Patrick Waters, director of retirement income products at Schwab. “The Schwab Monthly Income Funds are designed so that retirees can receive monthly income without chipping away at their nest egg. And to help protect future income from inflation, each of the funds includes a degree ofequity exposure for growth potential.”


The portfolio managers will monitor markets and adjust the investment mixture to keep the funds in line with their objectives of income and capital growth.

The Moderate Payout Fund offers an annual target income payout of 3% to 4%, the Enhanced Payout Fund has a target of 4% to 5%, and the Maximum Payout Fund has a target payout of 5% to 6%.

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