Retirement Income
Retirement income mutual funds are part of balanced fund. It uses its assets to purchase a portfolio of stocks, bonds, and cash. Depending on its objective, the mutual fund will adjust its assets to align with investors’ retirement goal. Some retirement income funds are more conservative than the others. The fund’s objective is to provide steady income throughout retirement.From this best performing funds list, you may find each individual fund review. You can find the fund performance, expense ratio, and yield or dividend from the table below. The list is sorted based on 1 year total return up to May 1st, 2013.
Best Performing Mutual Funds
 |
| Top funds |
- Vanguard Managed Payout Growth Focus fund (VPGFX)
- Fidelity Income Replacement 2042 fund (FIXRX)
- Fidelity Income Replacement 2040 fund (FIRWX)
- Fidelity Income Replacement 2036 fund (FIRUX)
- Fidelity Income Replacement 2034 fund (FIRSX)
- Fidelity Income Replacement 2032 fund (FIRRX)
- Vanguard Managed Payout Growth & Distribution fund (VPGDX)
- Fidelity Income Replacement 2030 fund (FIRQX)
- Fidelity Income Replacement 2028 fund (FIRPX)
- ING Global Target Payment fund (IGPAX)
- Fidelity Income Replacement 2026 fund (FIROX)
- Legg Mason Target Retirement fund (LMPAX)
- TIAA-CREF Lifecycle Retire Income fund (TLRRX)
- American Century LIVESTRONG Income fund (ARTOX)
- Russell 2017 Retirement Distribution fund (RRDAX)
- PIMCO RealRetirement Income & Distribution fund (PTNAX)
Vanguard Managed Payout Growth Focus fund (VPGFX)
This Vanguard Managed Payout Growth Focus fund invests majority of assets in Vanguard mutual funds and other investments according to an asset allocation strategy designed to provide shareholders with regular cash flow. It is managed by Michael H. Buek. He has managed this fund since 2008. This balanced fund has total net assets of $93 million. It has the lowest expense ratio compared to the other funds mentioned here (0.22%). The dividend yield is 2.44%. The April 2013 distribution was $0.04. The fund has annual holdings turnover of 50.0% as of April 14, 2013.More: Best No Load Retirement Income Balanced Mutual Funds 2013
This best retirement income mutual fund is ranked with 5-stars rating and Bronze rating by Morningstar. If you seek growth and income, this best mutual fund is suitable for your retirement account or 401(k) account. The YTD return of this VPGFX fund is 8.86%. The benchmarks are Managed Payout Growth Focus Composite Index and Dow Jones U.S. Total Stock Market Index. The annual performance of this fund since inception is as below:
- Year 2012: 13.24%
- Year 2011: -1.27% (lowest)
- Year 2010: 14.43%
- Year 2009: 25.90% (highest)
Fidelity Income Replacement 2042 fund (FIXRX)
This Fidelity Income Replacement 2042 fund utilizes tis assets to purchase a combination of Fidelity equity funds, bond funds, and short-term funds using an asset allocation strategy. It is suitable for investors who wish to retire around 2042. The fund’s NAV is listed as $54.30 per share. Its total net assets are only $10.89 million. The fund managers are Chris Sharpe and Andrew Dierdorf.This Fidelity mutual fund has an expense ratio of 0.68% per year. It is great choice for long term retirement account (IRA) or 401(k) account. The dividend yield is 2.10%. This top no load fund has recorded 3 years of positive return and 2 years of negative return. The best 1-year total return was in 2009 with 28.91%. As one of the top performing retirement income mutual funds, it has YTD return of 7.64% as of April 30, 2013. The fund uses S&P 500 as the fund’s benchmark.
The top asset allocation is 63.68% in Equity Funds, 31.79% in Bond Funds and 4.52% in money market/Short-Term Funds & Net Other Assets.
ING Global Target Payment fund (IGPAX)
Investor can buy this best performing retirement income mutual fund with minimum initial investment of $10,000. The YTD return is 4.85%. It has 3-year beta risk of 1.14. Based on the load adjusted returns, the fund has returned 1.13% over the past 1-year and 6.25% over the past 3-year. The only year it had negative return was in 2011 with -3.37%.
Previous: Top Performer Retirement Income Mutual Funds July 2011
As of March 2013, the fund has 19 total holdings. The top holdings are ING Intermediate Bond Fund Class I (16.30%), ING International Core Fund Class I (14.83%) and ING High Yield Bond Fund Class I (10.80%). The top portfolio composition is 40.49% in Bonds, 24.73% in Global International and 12.92% in Mid/Small/Specialty.
Legg Mason Target Retirement fund (LMPAX)
Steven Bleiberg, Y. Wayne Lin and Patricia Duffy are the co-portfolio managers of this LMPAX fund. The fund’s total net assets are $4.2 million. It invests mainly in other mutual funds or exchange traded funds (ETFs). The annual expense ratio is 1.15%. The 12b1 fee is 0.25% and the front end sales load fee is 5.75%. It also has a yield of 2.11%. This dividend is distributed semi-annually.Morningstar analysts rank this top balanced fund with 3-stars rating. The fund has always returned positively since the inception in 2008. The highest achievement so far was in 2009 with 27.65% and the lowest in 2011 with 1.87%. It has YTD return of 4.06%. The other classes of this fund are Class C (LMRCX), Class Institutional (LMIMX), etc.
As of the first quarter of 2013, the top holdings of this best fund are Western Asset Core Bond Fund (39.8%) and LM BW Global Opportunities Bond Fund (14.2%). The top asset allocation is 39.8% in US Core Fixed Income, 14.2% in Global Fixed Income, 13.1% in US Equity and 12.9% in International Equity.
TIAA-CREF Lifecycle Retire Income fund (TLRRX)
TIAA-CREF Lifecycle Retire Income fund uses its assets to buy a portfolio of underlying funds according to a relatively stable asset allocation strategy and is designed for investors who are already in or entering retirement. The fund’s total net assets are larger than the other funds mentioned here. It has $213.8 million of total assets. The expense ratio is 0.64% per year.
This retirement income fund’s shares price is $10.84. It also has a 12-month dividend yield of 2.41%. This balanced fund is currently under the management of Hans Erickson, John Cunniff and Pablo Mitchell.
Ranked with 4-stars and Bronze rating, this best mutual funds for retirement account (IRA) has 5.25% year-to-date return as of April 30, 2013. Based on the load adjusted returns, the fund has returned 8.61% over the past 3-year and 4.96% over the past 5-year. The benchmark index is Lifecycle Retirement Income Fund Composite Index.
The top asset allocation as of March 2013 is 39.41% in Fixed Income, 28.96% in US Equity and 11.67% in International Equity. The top holdings are TIAA-CREF Bond Fund, TIAA-CREF Inflation-Linked Bond Fund and TIAA-CREF Short-Term Bond Fund.
Retirement Income Fund Info
| No | Fund Description | Ticker | Rating | Assets (MS) | Expense Ratio | Yield |
|---|---|---|---|---|---|---|
| 1 | Vanguard Managed Payout Gr Focus Inv | VPGFX | 5 | $93.0 | 0.22% | 2.44% |
| 2 | Fidelity Income Replacement 2042 | FIXRX | 4 | $11.3 | 0.68% | 2.10% |
| 3 | Fidelity Income Replacement 2040 | FIRWX | 4 | $3.1 | 0.67% | 2.04% |
| 4 | Fidelity Income Replacement 2036 | FIRUX | 4 | $4.1 | 0.65% | 2.03% |
| 5 | Fidelity Income Replacement 2034 | FIRSX | 4 | $3.7 | 0.64% | 1.99% |
| 6 | Fidelity Income Replacement 2032 | FIRRX | 4 | $4.2 | 0.63% | 1.90% |
| 7 | Vanguard Managed Payout Gr & Dis Inv | VPGDX | 5 | $449.4 | 0.22% | 4.36% |
| 8 | Fidelity Income Replacement 2030 | FIRQX | 4 | $4.4 | 0.62% | 2.00% |
| 9 | Fidelity Income Replacement 2028 | FIRPX | 4 | $7.3 | 0.61% | 1.95% |
| 10 | ING Global Target Payment A | IGPAX | 1 | $101.6 | 1.30% | 6.16% |
| 11 | Fidelity Income Replacement 2026 | FIROX | 3 | $1.9 | 0.60% | 1.96% |
| 12 | Legg Mason Target Retirement A | LMPAX | 3 | $4.2 | 1.15% | 2.11% |
| 13 | TIAA-CREF Lifecycle Retire Inc Retail | TLRRX | 4 | $213.8 | 0.64% | 2.35% |
| 14 | American Century LIVESTRONG Inc Inv | ARTOX | 4 | $464.4 | 0.77% | 1.95% |
| 15 | Russell 2017 Retirement Distribution A | RRDAX | 1 | $1.7 | 1.19% | 11.36% |
| 16 | PIMCO RealRetirement Inc&Distrbtn A | PTNAX | 2 | $59.1 | 1.26% | 3.61% |
Fund Performance
| No | Fund Description | Ticker | YTD Return % | 1 Year Return % | 3 Year Return % | 5 Year Return % |
|---|---|---|---|---|---|---|
| 1 | Vanguard Managed Payout Gr Focus Inv | VPGFX | 8.86% | 12.40% | 9.75% | N/A |
| 2 | Fidelity Income Replacement 2042 | FIXRX | 7.64% | 12.10% | 8.54% | 4.99% |
| 3 | Fidelity Income Replacement 2040 | FIRWX | 7.34% | 11.63% | 8.36% | 4.87% |
| 4 | Fidelity Income Replacement 2036 | FIRUX | 6.91% | 10.98% | 8.00% | 4.72% |
| 5 | Fidelity Income Replacement 2034 | FIRSX | 6.74% | 10.70% | 7.89% | 4.75% |
| 6 | Fidelity Income Replacement 2032 | FIRRX | 6.57% | 10.43% | 7.79% | 4.80% |
| 7 | Vanguard Managed Payout Gr & Dis Inv | VPGDX | 7.55% | 10.55% | 9.19% | N/A |
| 8 | Fidelity Income Replacement 2030 | FIRQX | 6.39% | 10.20% | 7.69% | 4.83% |
| 9 | Fidelity Income Replacement 2028 | FIRPX | 6.17% | 9.88% | 7.54% | 4.78% |
| 10 | ING Global Target Payment A | IGPAX | 4.85% | 9.64% | 7.28% | N/A |
| 11 | Fidelity Income Replacement 2026 | FIROX | 5.92% | 9.53% | 7.37% | 4.75% |
| 12 | Legg Mason Target Retirement A | LMPAX | 4.06% | 9.25% | 8.20% | N/A |
| 13 | TIAA-CREF Lifecycle Retire Inc Retail | TLRRX | 4.48% | 8.88% | 7.94% | 5.29% |
| 14 | American Century LIVESTRONG Inc Inv | ARTOX | 5.25% | 8.72% | 8.00% | 5.18% |
| 15 | Russell 2017 Retirement Distribution A | RRDAX | 4.35% | 8.78% | 4.36% | -0.15% |
| 16 | PIMCO RealRetirement Inc&Distrbtn A | PTNAX | 2.63% | 8.53% | 6.71% | 4.88% |
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