Retirement Lifestyle Solution

Transcription

1 INVESTING IN RETIREMENT Retirement Lifestyle Solution INVESTED. TOGETHER.

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3 russell investments / investing in retirement Ready to plan your retirement lifestyle? Let s do it. Congratulations! If you re reading this brochure, it means you ve made one of the most important decisions in planning your retirement. Choosing to work with your trusted financial advisor means you know this is not the time to go it alone. Perhaps you ve noticed the conversations you re having with your advisor now are different than when you were saving for retirement. There are several reasons for this. Your portfolio must work differently now. When you were saving for retirement, your portfolio had a singular goal to grow as much as possible. Now that you ve retired, you may still want your portfolio to grow, but you may also need it to provide consistent retirement income. To do so, you ll need an investment plan that is both realistic and reliable. Risk takes on new meaning. In retirement, risk is more than how your portfolio reacts to the ups and downs of the market. Factors such as inflation and longevity also play a major role in your retirement lifestyle. Inflation could diminish your buying power, and then there s the risk that your money may not last as long as you need it to. Together with your advisor, you ll be able to build a plan that is designed to respond to the various risks and be sustainable throughout your lifetime. Staying on track is key to success. Every step of the way, you ll want to know where your portfolio stands in relation to your retirement income plan. By staying involved and conducting regular portfolio checkups with your advisor, you ll have the flexibility to adjust your plan as your personal situation and goals change. If you think you re retiring, think again. You have a new job now making sure you manage your portfolio the way you want so you can have the retirement lifestyle you desire. A reliable, sustainable, and flexible retirement income plan starts with you, your advisor, and the Retirement Lifestyle Solution.* Start by planning Invest for your lifestyle Stay on track *The Russell Investments Retirement Lifestyle Solution utilizes Russell Investments planning tool, investment solutions, and Advisory Services. Although designed to do so, the Retirement Lifestyle Solution TM may not adequately address a retiree s lifestyle needs in retirement. Investments and strategies are not guaranteed by Russell Investments.

4 russell investments / investing in retirement A goal without a plan is just a wish. Antoine de Saint-Exupéry 1 Start by planning. We live in an uncertain world. Much of the future is out of our control the economy, housing prices, and interest rates, for instance. If we spend time worrying about what s not in our control, we ll have less time and energy available to focus on what is within our grasp. Taking the time to effectively plan your lifestyle in retirement allows you to bridge the financial status you had while you were working with your financial future in retirement. Planning and staying vigilant in tracking your plan puts you in control so that you can respond to whatever comes your way. Key questions to discuss with your advisor How much can I spend? A good plan starts with a budget that includes day-to-day expenses, essentials like health and long-term care, and other desired expenses like traveling, giving, and estate planning.

5 russell investments / investing in retirement 2 Invest for your lifestyle. You ve spent decades accumulating your nest egg. Now you need a different approach to managing your portfolio that is designed to provide retirement income that is consistent and reliable. When you discuss your goals with your advisor, it could be an emotional conversation. How you spend your time and money now is different than while you were working. At Russell Investments, we understand your concerns. We ve been providing multiasset investment solutions for more than 40 years, and we strive to stay in touch with advisors and investors. Through our ongoing research, we ve learned many retirees want: Consistent retirement income. When you were saving for retirement, your concern often was getting the best return on your investments even if it meant taking on more risk. Now, you may want to be able to rely on your portfolio to provide the income you need to pay your bills throughout your retirement. A lasting portfolio. Your retirement income plan needs to fund all of your short and longterm goals, as well as unexpected expenses, for an uncertain period of time. To do that, you need a plan that is designed to provide sustainable withdrawals, which may require a different approach than you had during your working years. Flexibility and access. You don t want to be locked in to any one approach. You want access to your investments, and the ability to make changes to your portfolio at any time. Will my money last? To determine whether your money will last as long as you need it to, your advisor can calculate a metric called the funded ratio. Your funded ratio, which compares your projected assets and expenses, is a key factor in how your advisor recommends allocating and managing your portfolio so that it may provide you with consistent income throughout your retirement. Am I on track? If you re on track at the start of your retirement, you ll want to be sure you re on track every step of the way. Meeting with your advisor at least annually and when there is any major life event, to review your current situation, goals, and funded ratio will help you make any necessary adjustments or changes to your plan.

6 russell investments / investing in retirement 3 Most of all, you want to stay on track. Evaluating a portfolio that s receiving regular contributions is a different process than evaluating one that s intended to provide regular retirement income. When you were saving for retirement, generally you tracked the returns on your investments against a benchmark. That doesn t necessarily work when you re withdrawing and spending some of your portfolio on a regular basis. The Retirement Lifestyle Solution TM, which is available only through financial advisors, is a planning and investment program designed to help build a portfolio specifically for your retirement goals with consistent retirement income, sustainable withdrawals, and the flexibility and access you need to stay on track throughout your retirement.

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8 russellinvestments.com/ca IMPORTANT INFORMATION Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Nothing in this publication is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. This information is made available on an as is basis. Russell Investments Canada Limited does not make any warranty or representation regarding the information. Russell Investments is the operating name of a group of companies under common management, including Russell Investments Canada Limited. Russell Investments ownership is composed of a majority stake held by funds managed by TA Associates with minority stakes held by funds managed by Reverence Capital Partners and Russell Investments management. Frank Russell Company is the owner of the Russell trademarks contained in this material and all trademark rights related to the Russell trademarks, which the members of the Russell Investments group of companies are permitted to use under license from Frank Russell Company. The members of the Russell Investments group of companies are not affiliated in any manner with Frank Russell Company or any entity operating under the FTSE RUSSELL brand. Copyright Russell Investments Canada Limited All rights reserved. Date of first use: August 2015 Revised: September 2016 Retail (EXP ) PCG-REP-COL-007E (1 04/14)