Oppenheimer Enhances Retirement Income Manager

OppenheimerFunds, Inc. has announced enhancements to Retirement Income Manager, its free software tool which allows advisers to assess a client’s probability of meeting income needs during retirement based on his or her current situation.

Retirement Income Manager, launched in June 2005, uses data on market volatility, client health, client tax situations, investor risk preferences, inflation and changing income needs over time to generate 2,000 hypothetical Monte Carlo simulations and offer action steps to improve the client’s position in pursuing savings and investment objectives for retirement.

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

Oppenheimer said the enhancements include:

  • The ability to model pre-retirement savings up to 10 years before the individual’s stated retirement date.

  • Custom Advisor Portfolios: Advisers can now create their own portfolios or modify Oppenheimer’s portfolios.

  • The ability to model reverse mortgages and sales of other homes to create income. Advisers can model a client’s retirement with and without reliance on the investor’s home equity.

  • New Asset Classes: REITs and Commodities. Advisers selling Oppenheimer’s Real Estate fund and Real Asset fund can now accurately model them in Retirement Income Manager.

  • Dynamic Order of spending: Spending assets has different tax-implications depending on what type of plan of vehicle they are held in. Changing the order of spending can accelerate or defer payment of taxes which could impact the ability to generate income

  • Compare Plans Feature: This feature enables advisers to compare the impact of multiple scenarios for the client and show the impact of changing certain assumptions in the model.

  • Improved Client Report with easier to understand charts and clearer graphics.

Retirement Income Manager can assess the probability that an investor will need to work longer, scale back on lifestyle expectations or generate more income based upon their retirement goals, and the new enhancements allow financial advisers to provide even more customized scenarios for clients, the announcement said.

For more information, visit www.oppenheimerfunds.com.

New Families of Indices Launched for Institutional Investors

IndexIQ has launched a series of new families of indices for institutional and high net worth investors.

According to a press release, the IndexIQ products employ quantitative measures and multiple screens based on the firm’s research and methodologies to capture the value of core corporate and market attributes that frequently are undervalued in equity analysis. The indices are designed to combine the risk-adjusted performance characteristics of the best active managers with the traditional benefits of passive indexing, including rules-based methodologies, low turnover, diversification, liquidity, tax efficiency and low portfolio management costs.

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

IndexIQ’s families of indices are designed with methodologies incorporating a full range of investment strategies. IndexIQ’s products are rigorously back-tested over a 15-year timeframe and have demonstrated both consistently higher returns and, in many cases, lower volatility and other favorable characteristics relative to traditional indexes such as the S&P 500 and the Russell 3000, according to the press release. Among the statistics measured and tracked over multiple years are Alpha, Sharpe Ratio, R-Squared, Beta and Volatility.



“There is substantial and growing interest on the part of institutions and high net worth investors in new ways of indexing as a high value investment strategy,” said Adam Patti, Chief Executive Officer of IndexIQ, in the release. “These products are increasingly recognized as offering many of the benefits of traditional, passive indexes, such as low turnover and tax efficiency, with the greater potential for outperforming the broader market on a risk-adjusted basis.”

More information can be found at www.indexiq.com.

«