Drawdown strategies: Pluses and minuses of target-date funds

Assessing the merits of target-date funds

clock • 4 min read

Russ Mould assesses the fast-developing world of target-date funds for income drawdown investing...

The three main options open to anyone who eschews an annuity and prefers to go down the income drawdown route are raking off the yield generated by a portfolio, drawing down from the capital or simply leaving the savings pot well alone, in the view (or hope) that it will continue to grow. In each case, the investor must take a firm grip of proceedings, ensuring they have a very clear idea about their income and capital needs, and what they are relative to their available funds. These numbers will then go a long way to shaping the overall investment strategy in drawdown, and the target...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Income

IFA firms risk future complaints over high-risk decumulation funds

IFA firms risk future complaints over high-risk decumulation funds

High-risk multi-asset funds regularly used for decumulation clients

Jenna Brown
clock 10 June 2024 • 2 min read
Should IFAs change how they provide retirement income advice?

Should IFAs change how they provide retirement income advice?

Taking action now will prepare you for the expected FCA follow up

Tony Lewis
clock 04 June 2024 • 4 min read
Retirement income: Why the '4% rule' does not work for the UK

Retirement income: Why the '4% rule' does not work for the UK

Does the 4% rule have a place in UK retirement planning?

Doug Brodie
clock 10 May 2024 • 3 min read