Designed for Investors Over 55 Actively Planning For Retirement
“For decades, preparing for retirement meant saving as much as you could and trying to make your savings last a lifetime. Yet, understanding what a lump sum savings provides in estimated retirement income is difficult,” said Chip Castille, Managing Director and Head of BlackRock’s U.S. Retirement Group. “The CoRI Indexes enable pre-retirees to quickly estimate the annual lifetime income their current savings may generate once they turn 65. Now, individuals can also invest in the CoRI Funds, which seek to deliver a total return that tracks the expected median cost of lifetime income.”
The five funds launched are:
- BlackRock CoRI 2015 Fund (BCVAX)
- BlackRock CoRI 2017 Fund (BCWAX)
- BlackRock CoRI 2019 Fund (BCXAX)
- BlackRock CoRI 2021 Fund (BCYAX)
- BlackRock CoRI 2023 Fund (BCZAX)
The mutual funds invest primarily in fixed income securities and can also invest in other financial instruments. They will be managed by Scott Radell, CFA, and James Mauro, from BlackRock’s North America Portfolio Solutions Group within Americas Fixed Income Alpha Strategies.
The CoRI Funds seek to provide a flexible way to help you prepare for retirement, so that once you reach age 65, the choice is yours. You can liquidate your holdings in your CoRI Fund and work with your financial advisor to invest in another lifetime income solution, such as an annuity. Or you can customize your own plan.
You can remain in your CoRI Fund for up to ten years after you turn 65 and take distributions as part of your retirement income plan. Once your CoRI Fund reaches the year in which you turn 75, the Fund will be liquidated and your remaining investment returned to you. Similarly, once a CoRI Index reaches the year referenced in its title, it remains active for ten more years. The daily Index level will then represent the median price for immediate lifetime income.