OMAHA, Neb.--(BUSINESS WIRE)--Investors know the drill: save, invest, adjust, repeat…retire. But then what? Those looking to answer the question “how do I generate a supplemental stream of income while in retirement?” now have a new approach. Amerivest Investment Management, LLC (“Amerivest”), a subsidiary of TD Ameritrade Holding Corporation and TD Ameritrade, Inc.’s (“TD Ameritrade”) affiliated investment advisor, has launched Amerivest Supplemental Income Portfolios powered by Morningstar Associates. This new series of professionally built mutual fund portfolios is designed specifically to help generate income, with features that enable investors to choose when to receive income payments and how much each payment will be.
Sixty-three percent of today’s investors consider steady income in retirement their top financial priority.1 It’s a goal that overshadows a list of 10 other financial goals and is driven by economic fears such as adjusting to a lower standard of living in retirement, or being forced to relocate to a lower cost of living area.
“As more and more baby boomers approach and enter retirement, we’ve seen increased demand for tools and resources that help generate and manage income once retirement is no longer a goal but a reality,” said Ram Subramaniam, head of products at TD Ameritrade. “This new service can help supplement Social Security, pensions, and other income sources in retirement, while giving investors the ability to distribute income on a periodic basis. Investors even have the ability to choose when and potentially how much their payouts will be.”
Amerivest Supplemental Income Portfolios provide:
- Income generation—the majority of mutual funds included in each portfolio are actively managed with the goal of income in mind.
- Systematic withdrawals—investors can choose when to receive income payments and how much each payment will be using an online tool connected to the account.
- Objective recommendations—the experienced investment professionals at Morningstar Associates provide objective fund recommendations to Amerivest.
- Professional portfolio management—each portfolio is actively managed and looks to pursue optimal risk/reward balance, diversification, and maximum alignment with the investor’s unique goals.
- Ongoing maintenance—Amerivest oversees the details of each portfolio—including periodic rebalancing.
Investors can choose from two portfolios:
- Conservative Portfolio—which may be considered by individuals who want to generate income and preserve principal. This may be for someone already in retirement or looking for a conservative investment.
- Moderate Portfolio—which may be beneficial for those who wish to generate income while still experiencing a measured amount of growth that comes from small exposure to equities and some of the risk of equities. This may be for someone nearing retirement or needing a slightly more aggressive income-based investment.
In addition, investors further away from retirement can use the Amerivest Supplemental Income Portfolios to help round out their portfolios and potentially help manage risk.
For more information on the entire suite of Amerivest Portfolios, visit http://www.tdameritrade.com/planningretirement/portfoliosolutions/overview.html.
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About TD Ameritrade Holding Corporation
Millions of
investors and independent registered investment advisors (RIAs) have
turned to TD Ameritrade’s (NASDAQ: AMTD) technology,
people
and education
to help make investing and trading easier to understand and do. Online
or over the phone. In a branch or with an independent RIA. First-timer
or sophisticated trader. Our clients want to take control, and we help
them decide how—bringing Wall Street to Main Street for more than 36
years. An official
sponsor of the 2012 U.S. Olympic Team, TD Ameritrade has time and
again been recognized
as a leader in investment services. Please visit TD Ameritrade’s newsroom
or www.amtd.com
for more information.
Brokerage services provided by TD Ameritrade, Inc., member FINRA (http://www.finra.org) SIPC (www.SIPC.org) /NFA (www.nfa.futures.org).
About Amerivest Investment Management, LLC
Amerivest is an
investment advisory service of Amerivest Investment Management, LLC, a
registered investment advisor. Brokerage services provided by TD
Ameritrade, Inc. TD Ameritrade, Inc. and Amerivest Investment
Management, LLC are both wholly owned subsidiaries of TD Ameritrade
Holding Corporation. Amerivest is a trademark of TD Ameritrade IP
Company, Inc. Amerivest provides non-discretionary and discretionary
advisory services for a fee. Risks applicable to any portfolio are those
associated with its underlying securities. For more information, please
see the Amerivest
Disclosure Brochure (ADV Part 2).
About Morningstar Associates, LLC
A part of Morningstar
Investment Management (a division of Morningstar), Morningstar
Associates, LLC (“Morningstar Associates “) is a registered investment
advisor and wholly owned subsidiary of Morningstar, Inc. Morningstar
Associates is a premier provider of independent investment management
and consulting services to institutions. It combines world-class
resources, rigorous investment processes, and industry and product
expertise to design innovative and custom solutions that best serve
clients and investors. Morningstar Associates provides investment
advisory services on more than $60 billion in assets as of September 30,
2011.
Morningstar Associates provides consulting services to Amerivest Investment Management, LLC (“Amerivest”) but is not acting in the capacity of advisor to individual investors. Morningstar Associates provides recommendations to Amerivest regarding asset allocation targets and selection of securities appropriate for the Amerivest portfolios; however, Amerivest retains the discretion to accept, modify or reject Morningstar Associates' recommendations. Morningstar Associates selects securities for the Amerivest portfolios from the universe of investments made available through TD Ameritrade, Inc. Asset Allocation target allocations are subject to change without notice. Morningstar Associates establishes the allocations using its proprietary asset classifications. If alternative classification methods are used, the allocations may not meet the asset allocation targets. Neither Morningstar Associates nor Morningstar, Inc. is affiliated with TD Ameritrade, Inc. and its affiliates.
About Maritz
St. Louis-based Maritz is a sales and marketing
services company, which helps companies achieve their full potential
through understanding, enabling, and motivating employees, channel
partners, and customers. Maritz provides market and customer research,
communications, learning solutions, incentive initiatives, rewards and
recognition, effective meeting, event and incentive travel management
services, and customer loyalty programs. For more information, visit www.maritz.com
or contact us at 1-877-4MARITZ.
1Survey Methodology
These results are
based on a survey conducted by Maritz, Inc. on behalf of TD Ameritrade,
Inc. Ten thousand two hundred twenty-three (10,223) clients age 30 years
or older participated in an online survey from February 28 through March
14, 2011. The margin of error in this survey is ±1.0%. This means that
in 19 cases out of 20, survey results based on 10,223 respondents will
differ by no more than 1.0 percentage point in either direction from
what would have been obtained by seeking the opinions of all TD
Ameritrade clients who met the eligibility criterion of age. Maritz,
Inc. and TD Ameritrade , Inc. are separate, unaffiliated companies and
are not responsible for each other's products and services.