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 June December 31, 2023).
*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.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Payments consisting of return of capital will result in a decrease in an investor's fund share balance. Higher rates of withdrawal and withdrawals during declining markets may result in a more rapid decrease in an investor's fund share balance. Persistent returns of capital could ultimately result in a zero account balance.
The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds.
Fund shares of U.S. Government Securities Fund are not guaranteed by the U.S. government.
Allocations may not achieve investment objectives. The portfolios' risks are related to the risks of the underlying funds as described herein, in proportion to their allocations.
Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds.
The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.
While not directly correlated to changes in interest rates, the values of inflation-linked bonds generally fluctuate in response to changes in real interest rates and may experience greater losses than other debt securities with similar durations.
American Funds Strategic Bond Fund may engage in frequent and active trading of its portfolio securities, which may involve correspondingly greater transaction costs, adversely affecting the fund's results.
Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries.
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American Funds Distributors, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.