Solving for Retirement Income
A&P Capital LLC provides investment solutions that address one of the most challenging problems facing investors today: How to secure a long-term stream of assured future retirement income from an investment portfolio that is both liquid and has low fees?
The Challenge
Most retirement investment solutions focus primarily on asset accumulation, without directly addressing the need to generate assured income during decumulation across the retirement years.
A&P Capital LLC provides investment solutions that address one of the most challenging problems facing investors today: How to secure a long-term stream of assured future retirement income from an investment portfolio that is both liquid and has low fees?
The Challenge
Most retirement investment solutions focus primarily on asset accumulation, without directly addressing the need to generate assured income during decumulation across the retirement years.
Target Date Funds
Target date funds design predictable asset allocation glide paths. But what happens at retirement? Where investors may land at the target date, both in terms of asset value and retirement income potential, is completely unpredictable in advance. |
The 4% Rule
Simple decumulation formulas, such as the 4% withdrawal rule, can quickly deplete assets in major market declines and offer no guidance on asset accumulation. |
Annuities
While annuities address the challenge of assured income, they usually do so at the cost of inflexibility, high fees and potential credit risk. |
Our Solution
The Invesco/A&P Capital Retirement Income Index offers investors a new, transparent way to benchmark the current cost of generating 30 years of assured income, using a curated portfolio of U.S. Treasury securities, all of which are backed by the full faith and credit of the US government.
The Index’s value reflects today’s all-in cost to acquire $1 of income every year for the next 30 years. This annual $1 of assured income is unaffected by changes in interest rates or other market variables.
The Invesco/A&P Capital Retirement Income Index offers investors a new, transparent way to benchmark the current cost of generating 30 years of assured income, using a curated portfolio of U.S. Treasury securities, all of which are backed by the full faith and credit of the US government.
The Index’s value reflects today’s all-in cost to acquire $1 of income every year for the next 30 years. This annual $1 of assured income is unaffected by changes in interest rates or other market variables.
According to one recent industry study
The Index can help in all of these areas
- 68% of investors are worried about running out of money in retirement
- Only 22% are very confident they can create a long-term retirement income strategy
- 58% prefer the idea of achieving retirement income over retirement savings
- 94% see a strategy that provides assured lifetime income solutions as a good fit for their retirement needs
- 90%+ want to maintain control and choice over their assets and are concerned about costs
The Index can help in all of these areas