Products December 10, 2008

OppenheimerFunds Introduces Retirement Income Program for Advisers

OppenheimerFunds, Inc. (OFI) Retirement Solutions Division announced the launch of Lifetime Income Distributor.
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Lifetime Income Distributor is a free investment and income management program designed to help advisers create and implement retirement income strategies, according to a company release. The program enables advisers to determine sustainable withdrawal amounts and develop automated cash flow strategies to provide a steady stream of income for their clients in or entering retirement.

“We recognize that advisers are under siege today,’ said Keith Hylind, vice president of Retirement Solutions at OppenheimerFunds, Inc., in the release. “Given current market volatility and the complexity of managing multiple portfolios to generate retirement income, we feel this is the ideal time to introduce Lifetime Income Distributor. While pre-retirement planning is and will always be important, advisers need simple yet comprehensive tools such as Lifetime Income Distributor to help them manage client spending in retirement.’

According to OppenheimerFunds, Lifetime Income Distributor combines the following:

  • a Monte Carlo-based modeling software used to determine sustainable income amounts
  • professional asset management capabilities through the OppenheimerFunds’ Portfolio Builder program
  • income distribution support through flexible systematic withdrawal systems.

Specifically, Lifetime Income Distributor runs 500 Monte Carlo simulations, which measure the effect of different investment scenarios, single or joint life expectancies, general inflation rates, and other factors. The program then projects the likelihood of an investor sustaining spending levels throughout retirement.

Lifetime Income Distributor is designed to be used most effectively with OppenheimerFunds’ Portfolio Builder, an asset allocation program introduced in 2000, the firm said. Portfolio Builder also provides automatic rebalancing and enables advisers to build and maintain a customized portfolio that reflects the needs and risk tolerances of their clients. Advisers can also use Lifetime Income Distributor as a standalone diagnostic tool for investors who do not participate in the Portfolio Builder program.

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