Products April 15, 2008

Russell Launches Target Distribution Funds

Russell Investments has launched a series of new multimanager funds, designed specifically for the “decumulation″ phase of retirement saving and seeking to provide a steady, but not guaranteed, annual distribution.
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Russell LifePoints Funds, Target Distribution Strategies leverage a unique, dynamic asset allocation strategy designed to provide retirees with an ongoing, reliable way to replace pre-retirement income; for certain funds, the potential to preserve some savings; and the flexibility to make changes throughout retirement, according to the product announcement.

The offering includes:

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  • 2017 Retirement Distribution Funds: Seek to provide a stated annual target distribution for 10 years from inception. As a secondary objective, the funds seek preservation of a portion of the capital initially invested. Initial Annual Target Distribution: 70 cents per share per year payable annually.
  • 2017 Accelerated Distribution Funds: Seek to provide a stated annual target distribution for 10 years from inception. Initial Annual Target Distribution: $1.00 per share per year payable annually.
  • 2027 Extended Distribution Funds: Seek to provide a stated annual target distribution for 20 years from inception. As a secondary objective, the funds seek preservation of a portion of the capital initially invested. Initial Annual Target Distribution: 60 cents per share per year payable annually.

“The Target Distribution Strategies represent a whole new approach to mutual fund investing – one that can help individuals navigate the range of competing emotional and financial issues that they face as they move through retirement,” said Timothy Noonan, managing director, Russell Investments, in the announcement.

More information about the funds can be obtained at www.russell.com or by calling 800-787-7354.

Deals & People April 15, 2008

Hartford Adds Retirement Income Offering to 401(k) Plan

The Hartford Financial Services Group has announced that The Hartford Lifetime Income will be offered to participants in the company’s 401(k) plan.
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A news release said the new offering features a guaranteed retirement income investment portion and is expected to be available by early 2009. Contributions directed to The Hartford Lifetime Income will be eligible for the company’s employer match.

“Our employees are increasingly interested in taking ownership of their financial future and making sure they take the right steps to secure their retirement,” said Eileen Whelley, The Hartford’s executive vice president of human resources, in the release. “The Hartford already provides comprehensive 401(k) offerings with a company match and a company-sponsored retirement plan, but we are continually looking for ways to provide competitive and innovative benefits to our employees.”

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Participants can adjust the start date for their income and can move investments in and out of their guaranteed income account (See Annuity in 401(k) Clothing, Guaranteed Income Should Be Part of Overall Retirement Strategy).

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