This new series of professionally built mutual fund portfolios is designed to specifically help generate income, with features that enable investors to choose when to receive income payments and how much each payment 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 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, such as someone already in retirement
- 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, such as someone nearing retirement or needing a slightly more aggressive income-based investment.
In addition, investors with more time until retirement can use the Amerivest Supplemental Income Portfolios to help round out their portfolios and potentially help manage risk.
“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.”
For more information on the suite of Amerivest Portfolios, visit http://www.tdameritrade.com/planningretirement/portfoliosolutions/overview.html.