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Abstract

A method for providing retirement income using mutual fund longevity insurance is provided. A current or prospective retiree can purchase a mutual fund coupled with a longevity product. The longevity product insures against the early exhaustion or termination of the mutual fund, superannuation, or poor market performance of the mutual fund, and could be funded using a qualified annuity, a Roth Individual Retirement Annuity (IRA), or a non-qualified annuity to provide tax advantages. Retirement income is provided for the retiree beginning at retirement. During the life of the mutual fund, periodic withdrawals are taken from the mutual fund and invested in the longevity product. If the retiree reaches a threshold age, the retiree can choose to receive income from the longevity product. Optionally, if the retiree reaches the threshold age and sufficient income is available from the mutual fund, the retiree can continue to receive income from the mutual fund and delay receiving income from the longevity product until a later age. Income from the longevity product can be provided until the death of the retiree. A number of insurance options can be provided, including a pure insurance option, a partial insurance option, or a guaranteed payback option.

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