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From New Mutual Funds, Help in Serving the Nest Egg

The New York Times, 11/25/07

Abstract:

Wall Street has repeatedly sounded alarms to spur working Americans to save more for retirement, but it has been less interested in helping convert nest eggs to spendable, post-paycheck income.

Of course, mutual funds emphasizing dividends have long been available, along with plans for withdrawing principal. More recently, the industry has offered life-cycle funds that become more conservative as investors age. And some companies have been offering advice, like the so-called Monte Carlo calculations, that show the odds that a given rate of spending will provide for the rest of one’s life.

Yet many investors, even those without traditional pensions, still reach retirement with only the vaguest notion of how to switch from accumulating assets to tapping them to finance their usual standard of living.

Now, however, as the first baby boomers start to collect Social Security checks, fund sponsors are coming up with a passel of new products catering mainly to those who are knocking at the gates of retirement — or are already inside.

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