Podcast Center
Video Center
Webcasts
Resource Center
Events
October 03, 2007 at 01:01 PM
A giant money manager has come out with a family of mutual funds and a deferred variable annuity aimed at consumers who are planning for retirement.
Fidelity Investments, Boston, says the 11 new Fidelity Income Replacement Funds mutual funds will come with a Smart Payment Program service.
The service will help investors decide how much to contribute each month to fund a specified level of retirement income, Fidelity says.
The funds are “target date” funds aimed at investors who expect to retire sometime between 2016 to 2036. The most conservative fund will be for investors who think they will retire in 2016, and the most aggressive fund will be for investors who want to wait until 2036 to retire. The other funds are for investors who expect to retire in 2018, 2020, 2022, 2024, 2026, 2028, 2030, 2032 or 2034.
Fidelity will be selling the target-date funds directly to investors as well as through advisors.
Expense ratios range from 0.54% to 0.65%.
Fidelity notes that the contribution recommendations will produce the desired income only if the fund’s investment strategy works as intended.
For investors who want to protect their principal, Fidelity is introducing the Fidelity Growth and Guaranteed Income variable annuity.
