A Series of CITs or ETFs, providing retirement income for 30 years
Funds distinguished by the year income commences:
Each fund share provides $1 of income annually ($0.25/qtr) for 30 years (120 qtrs) following the TPD
The number of RIIX Fund shares owned = annual retirement income
Funds distinguished by the year income commences:
- The Target Payment Date (TPD)
- E.g. the RIIX Retirement Income Fund 20XX, where XX = TPD
Each fund share provides $1 of income annually ($0.25/qtr) for 30 years (120 qtrs) following the TPD
- regardless of changes in interest rates or stock market prices
- price per share will fluctuate, but not annual payouts
The number of RIIX Fund shares owned = annual retirement income
- an important nudge to retirement accumulation
What the RIIX Income Funds provide:
Transparency and Safety
Liquidity
Low Fees:
Transparency and Safety
- Simple to explain: $1 of annual income per RIIX share for 30 yrs, starting at TPD
- Income Payouts are fully and continuously collateralized by verifiable holdings of U.S. Treasury instruments
- Benchmarked to Invesco-A&P Capital RIIX Index that provides performance yardstick
- Rebate (through share sale) of unpaid income value if a participant dies within 30 years
Liquidity
- Treasury markets are unmatched for size, liquidity
- Permits large potential AUM for RIIX funds; fund can absorb large contributions, redemptions
- The protection of Treasuries in turbulent markets (“flight to quality”)
- Less reason for investors to withdraw funds in such markets
Low Fees:
- Collective Investment Trust (CIT) or Exchange-Traded Fund (ETF) structure