Investors with a minimum of $50,000 in assets are eligible for new income-focused portfolios from Merrill, designed to deliver predictable income for retirees over a 25-year period. Bank of America announced the new offering from Merrill today.
“The new income-focused portfolios are designed to help with concerns over outliving retirement savings by giving retirees the ability to control their income, while allowing for flexibility as life changes inevitably occur.”
Mark Granshaw, Bank of America
“For many, the fear of outliving retirement assets can be overwhelming,” said Matt Gellene, Head of Consumer Investments and Employee Banking & Investments at Bank of America. “Having a predictable monthly income replacement vehicle helps retirees enjoy this phase of life with greater confidence in their long-term financial security.”
The new income-focused portfolio capabilities are part of Merrill’s latest enhancements to personalize the investing experience and help clients make more informed and confident investing decisions throughout their financial journey. Merrill Guided Investing is an online investment advisory program that combines online investing with a professionally managed portfolio. Merrill Guided Investing with Advisor offers access to the platform and additional one-on-one guidance from a Merrill Financial Solutions Advisor.
“The new income-focused portfolios are designed to help with concerns over outliving retirement savings by giving retirees the ability to control their income, while allowing for flexibility as life changes inevitably occur,” said Mark Granshaw, Head of Consumer Investments Product for Bank of America.
Key features of the income-focused portfolios include:
- Income-focused strategy choices: Investors can choose strategies ranging from “stable income” to “income and growth” to best align with their time horizon, risk tolerance and more.
- Seamless integration: Portfolios provide for recurring distributions into a Bank of America checking account or other bank or investing account of their choosing, and seamless connectivity to a client’s broader Bank of America and Merrill relationship. Clients must have a minimum of $50,000 in assets to fund the account.
- Professionally managed: Portfolios designed and managed by the Chief Investment Office provide investors with a fully integrated experience across asset allocation, portfolio construction, investment selection and risk management. The CIO provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics.
According to Bank of America’s latest Workplace Benefits Report, already low confidence among employees in their ability to manage retirement income needs has gotten lower over the last two years (2021 vs. 2023), including the ability to go from saving money for retirement to spending money in retirement (30% vs. 24%).
Confidence in setting up the right withdrawal schedule and amount (30% vs 20%) and having the flexibility to manage unexpected expenses (33% vs. 23%) also fell.
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