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The burgled homeowner uses insurance money to replace stolen items; the heisted bank turns to A.I.G. for replacement funds; the indebted gambler — unable to get the payoff loot — hobbles away with a broken knee or meets his fate at the end of a gun.
The Fidelity Income Replacement Funds use this methodology.
Fidelity Investments, based in Boston and the nation's largest mutual fund company, opened 11 income replacement funds in October.
Fidelity's Income Replacement funds use target dates to determine the period over which the portfolio will be drawn down.
One of the first firms off the mark this fall was Fidelity, whose Income Replacement Funds come with a choice of 11 targets, or time horizons, from 2016 to 2036.
Are these new income replacement funds a good deal relative to annuities?
Similar(49)
Mr. Alibhai says he is searching for another bank — possibly one outside the United States — to provide $250 million in replacement funding.
Despite this Twitter-driven display of community spirit, I won't be giving to the Dev Hynes home replacement fund.
As rates rise, depositors will look for alternative investments, leaving them needing to find pricier replacement funding.
The way I see it is it's an innovation fund, not a replacement fund – it's not letting the government off the hook.
At a time of economic restraint there are legitimate debates to be had about replacement funding for the arts, but crimes against the environment are crimes against humanity, and oil money is an expedient too far.
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