Merrill has begun offering new income-focused portfolios designed to deliver predictable income for retirees over a 25-year period, according to a March 25 announcement by Bank of America.
Now available for Merrill Guided Investing and Merrill Guided Investing with Advisor clients, key features of the income-focused portfolios include the following.
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: The 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, the announcement notes.
Professionally managed: Designed and managed by the firm’s Chief Investment Office, the portfolios provide investors with an integrated experience across asset allocation, portfolio construction, investment selection and risk management.
"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, in a statement. “Having a predictable monthly income replacement vehicle helps retirees enjoy this phase of life with greater confidence in their long-term financial security.”
Drawing from its 2023 Bank of America Workplace Benefits Report, the firm notes that 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%)
- Set up the right withdrawal schedule and amount (30% vs. 20%)
- Have the flexibility to manage unexpected expenses (33% vs. 23%)
"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," added Mark Granshaw, head of Consumer Investments Product for Bank of America.
According to the announcement, 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.
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.
