Turn all the money you saved over the years into a steady stream of income while you relax in your new home of retirement. People turn to annuities, which saw a sales boom right after the stock market crash. This makes your dreams come true. Now mutual fund firms have their own breed of lifetime income.
However, the mutual fund income funds present one hurdle that annuities don’t and that is the potential for investment losses. Most of them are funds of funds, with exposure to stocks. Therefore, when shareholder assets drop, payments drop too. Several funds proved this point very quickly, by launching just before markets tanked.