Bank of America has officially announced the launch of new income-focused portfolios that are conceived to help retirees achieve a stable stream of income over a 25-year period. Available for a client base using Merrill Guided Investing and Merrill Guided Investing with Advisor, the stated portfolios bring to the fore income-focused strategy choices that enable investors to actively choose tactics in the context of possible objectives, such as “stable income” and “income and growth.” The idea here is to reach on a solution which best aligns with a particular user’s preferred time horizon, risk tolerance, and more. Next up, these portfolios pack together a seamless integration equipped to facilitate recurring distributions into a Bank of America checking account, or any other bank or investing account of customer’s choice. This they do while simultaneously conceiving connectivity to a client’s broader Bank of America and Merrill relationship. Markedly enough, in order to avail the said benefit, a client must have a minimum of $50,000 in assets to fund the account. Another detail worth a mention would be how the said portfolios are professionally managed to deliver the best possible service at every possible touchpoint. You see, designed and managed by the bank’s Chief Investment Office, the solution in question basically pave the way for investors to enjoy a fully integrated experience across asset allocation, portfolio construction, investment selection, and risk management.
“For many, the fear of outliving retirement assets can be overwhelming,” said Matt Gellene, Head of Consumer Investments and Employee Banking & Investments at Bank of America. “Having a predictable monthly income replacement vehicle helps retirees enjoy this phase of life with greater confidence in their long-term financial security.”
The development in question delivers a rather interesting follow-up to 2024 Bank of America Workplace Benefits Report, which revealed that employees across the board already have a severely low confidence in managing their retirement income. This dip in confidence has been all the more evident over the last years. During the given timeframe, for instance, the percentage of employees who would save money for retirement to spend money in their post-professional phase has dropped from 30% to 24%. The percentage of employees who had the right withdrawal schedule and amount also dropped from 30% to 20%. On top of that, even the flexibility to manage unexpected expenses deflated from 33% to 23%.
Coming back to the all-new portfolios, they actually comes as just a part of Merrill’s wider effort to personalize the investing experience and help clients make more informed and investing decisions throughout their financial journey.
“The new income-focused portfolios are designed to help with concerns over outliving retirement savings by giving retirees the ability to control their income, while allowing for flexibility as life changes inevitably occur,” said Mark Granshaw, Head of Consumer Investments Product for Bank of America
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