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The Income Management: Summary page is a dashboard of key components related to your retirement finances, including your Income Management Account balance, cash flow, and Retirement Income Portfolio. The Summary page provides information that makes it easy to track your actual spending and income activity against the assumptions in your plan of record. If you have a plan of record, the page compares the asset withdrawal rate you specified in your plan of record to your actual asset withdrawal rate. The page also shows your Retirement Income Portfolio value and asset allocation, so that you can monitor any changes to them.
The Income Management Account is provided by Fidelity Brokerage Services LLC and is intended to help you manage your investments and finances in one consolidated brokerage investment account. The account can be linked to and is designed to coordinate with the Retirement Income Plan created using Fidelity's Retirement Income Planner, which is developed and offered by Strategic Advisers, Inc, a registered investment adviser and a Fidelity Investments Company. You may use the Income Management Account to implement the Retirement Income Plan you received from your Retirement Income Planning interaction with Strategic Advisers.
Retirement Income Advantage is a suite of services and tools that support retirement planning, investing and income management. Retirement Income Advantage services let you follow this simple three-step process to help you manage your finances in retirement:
Your Income Management Account (IMA) is a service that includes a cash flow management account linked to your portfolio. The IMA provides monitoring of all designated Fidelity and non-Fidelity account assets through Full View®. The IMA monitors:
To get the most robust reporting on your retirement cash flow and monitoring of your asset withdrawal amount and asset withdrawal rate, you must direct all of your retirement income and spending through your IMA. To simplify your finances and enhance reporting, you can use electronic funds transfer (EFT) service to easily transfer money from your external accounts into your Fidelity investment accounts, then transfer the money into your IMA.. You can also arrange for direct deposit from any of your regular income sources into the IMA.
The IMA offers additional features such as checking, debit or credits cards, Fidelity Billpay®, or the ability to direct periodic deposits to your bank using electronic funds transfer (EFT) or Personal Withdrawal Service if you prefer to use your bank's cash management features. You can set IMA alerts that automatically notify you of financial events such as upcoming quarterly tax payments, deposits of social security or pension payments, or when your IMA account balance falls below a specified amount. You can receive notification through a variety of methods, including e-mail, voice mail, pager, and Personal Digital Assistant (PDA).
Your Retirement Income Portfolio is the set of accounts and underlying assets that you indicated you are using to fund your retirement. You designate these accounts as you create a retirement plan and save it as your plan of record. You update the accounts in your Retirement Income Portfolio by updating your plan and saving it as your new plan of record.
Your Retirement Income Portfolio is the part of your plan of record that serves as the baseline for your IMA reporting. Keep in mind that monitoring your retirement assets is part of maximizing your plan's success rate. For the IMA to report on your Retirement Income Portfolio, all the accounts must be held at Fidelity, accessed through Full View®, or entered manually in the Retirement Income Planner.
Your Income Management Account is the cash flow management and reporting part of your Retirement Income Portfolio. Your IMA contains money market balance(s) used for spending purposes. These balances are included in your overall Retirement Income Portfolio balance and asset allocation. Your IMA also provides access to easy transfers that link the accounts in your portfolio and make it simple to move cash. IMA tools help you monitor your retirement assets, including your asset withdrawal rate from your Retirement Income Portfolio.
The Retirement Income Portfolio column on the Income Management: Summary page displays the total market value of all accounts designated in the plan of record for your Retirement Income Portfolio. Balance data is as of the close of the previous business day for all Fidelity record-kept accounts. For Full View® accounts that you have designated as part of your Retirement Income Portfolio, the date that the balance data was obtained appears in a note at the bottom of the Retirement Income Portfolio Details page. Any accounts that you entered into the Retirement Income Portfolio manually have associated dates at the bottom of the Retirement Income Portfolio Details page as well.
The Retirement Income Portfolio balance does not include unexercised options from employee stock option plans, stock purchase plans, restricted stock awards, or stock appreciation rights.
To monitor your Retirement Income Portfolio through your Income Management Account (IMA) on Fidelity.com, you must:
Status messages are customized messages displayed on the Income Management: Summary page to notify of you of the current status of your Retirement Income Portfolio. Status messages report on such key measurements as asset withdrawal amount and rate, estimated months until your IMA must be replenished, and asset allocation. Status messages provide commentary on how to interpret key measurements, including comparisons to planned values, and suggested actions to take when appropriate.
Many status messages depend on information from your plan of record. You may not receive certain status messages if:
Some status messages are informational and require no action on your part other than continued monitoring of your financial situation. Some status messages suggest that you review your retirement plans, or notify you of actions that you may need to take in the near future (such as replenishing your account). Urgent status messages specifically suggest remedial actions to consider taking immediately.
One of the best ways to help protect yourself from the unpredictability of the market may be to spread your assets among the three main types of investments: equities (stocks), fixed income investments (bonds) and short term investments (cash). This process of spreading your investments in a strategic way across the three asset classes is called asset allocation. While asset allocation does not ensure a profit or guarantee against loss, when you divide your total holdings among the asset classes of equity, fixed income and short-term investments, you can lower the risks associated with having all your money in only one type of investment.
Asset allocation also affords you the opportunity to determine how much of your money you may need to invest for the short term and how much you can afford to put in higher-risk, longer-term growth-oriented investments. It helps investors identify what risk/return balance makes sense for them, given what they are trying to accomplish and in what timeframe.
On the Income Management: Summary page, click Retirement Income Portfolio Details (in the Retirement Income Portfolio column) to view the current asset allocation of your Retirement Income Portfolio. The Retirement Income Portfolio Details page also compares your current asset allocation with the target asset mix defined in your plan of record, and calculates the increase or decrease for each investment type required to bring your asset allocation in line with your target.
Your target asset mix (TAM) is an allocation among stocks, bonds, and short-term investments which you selected in the Retirement Income Planner when you created your plan of record. Based on your the information you enter in the Retirement Income Planner, Fidelity can suggest one of several Target Asset Mixes consistent with your stated goals and the risk tolerance of investors like you. These mixes are created based on historical risk and return characteristics for stock, bond, and short-term investment asset classes. The mixes represent six significantly different allocations that are intended to reflect differing investor profiles with varying investment objectives, risk tolerances, and time horizons, from conservative to aggressive investing styles. The six target asset mixes are short term, conservative, balanced, growth, aggressive growth, and most aggressive. The TAM you select should reflect your tolerance for risk, and may help protect you from the effects of inflation and adverse market conditions.
You selected your target asset mix (TAM) in the planning session when you created your plan of record. You can view your current TAM on the Retirement Income Portfolio Details page. You can use the Retirement Income Planner to specify or change your TAM, and save your changes to your plan of record.
Your asset allocation refers to the actual distribution of your Retirement Income Portfolio holdings among different types of investments (equities, bonds, short-term, and so on). Your TAM, on the other hand, defines the asset allocation you selected to follow to support your retirement goals, as defined in your retirement plan of record.
If your circumstances change after selecting a TAM in your plan of record, you should revisit the Retirement Income Planner to adjust your TAM to support your current needs and goals.
You will not see your target asset mix (TAM) if you have no plan of record, or if you did not select a TAM as part of your plan, or if your TAM is not saved in your plan of record.
You can compare your current asset allocation to your target asset mix on the Retirement Income Portfolio Details page. Reallocating your investments requires that you change the asset mix of your current holdings by executing trades. For help in exploring an investment strategy to adjust your current asset allocation, choose Retirement & Guidance > Overview, then select Portfolio Review. Choose Asset Allocation in step 1, Choose Your Goal, then follow the online instructions.
Your asset withdrawal rate is based on the asset withdrawals from your Income Management Account over the previous 12 months. If you have less than 12 months of asset withdrawal experience, the rate is an annualized number based on the average of months of available data. Your asset withdrawal rate is calculated by dividing your annualized asset withdrawal amount by the current market value of your Retirement Income Portfolio. Your asset withdrawal rate is not calculated if you have no plan of record.
The Income Management: Summary page displays both your actual average monthly asset withdrawal rate and your planned monthly asset withdrawal rate, from your plan of record. We believe that an average asset withdrawal rate higher than planned could have serious consequences for the viability of your retirement. In such a situation, you should call your account representative (at 800-544-6666) or income planner to explore the consequences for your retirement more fully.
Your planned asset withdrawal rate is taken from your plan of record. It is calculated just as your actual asset withdrawal rate is. If you have no plan of record, or if you have less than six months of account activity, your planned asset withdrawal rate is not displayed, and your actual withdrawal rate is not compared to plan.
You create a plan of record when you save a detailed retirement income plan through the Retirement Income Planner. Your plan of record contains personal information, projected retirement expenses and income, the list of accounts and other assets included in your Retirement Income Portfolio, and an analysis of your risks in retirement.
The Income Management: Summary page uses your plan of record as a baseline against which to monitor your actual experience. You can view your plan of record from the Related Links at the bottom of the Income Management: Summary page. To update your plan of record, you must return to the Retirement Income Planner.
To create a plan of record, you must define a detailed retirement income plan through the Retirement Income Planner, then save your plan. You can review your plan of record from the Related Links on any of the Income Management Account pages, or by revisiting the Retirement Income Planner. To update your plan of record, you must return to the Retirement Income Planner.
If you're not receiving monitoring information on the Income Management: Summary page and you have a plan of record, make sure that your Income Management Account is included in the assets listed in your Retirement Income Portfolio. If not, you can add your Income Management Account to your Retirement Income Portfolio by revisiting the Retirement Income Planner.
IMA monitoring compares the asset withdrawal amount, asset withdrawal rate, and asset allocation of your retirement assets against the plan of record you created in Fidelity's Retirement Income Planner. Certain limiting factors, however, may result in differences between your IMA and your plan of record.
Your Income Management Account balance is the market value of the positions held in your IMA as of the close of the previous business day.
Below your Income Management Account balance is the estimated months remaining until your account runs out of money and must be replenished. The estimated months of IMA balance remaining is derived by dividing your IMA balance by your average monthly asset withdrawal amount. Fidelity suggests keeping 6 months of asset withdrawal to cushion against unforeseen expenses. If the projected months remaining in your account drops below 3 months, you will receive a status message notifying you of the situation.
Estimated months remaining is calculated by dividing your current IMA balance by your average asset withdrawal amount. Note that increased spending in future months could deplete your Income Management Account balance sooner.
We suggest keeping 6 months of asset withdrawal to cushion against unforeseen expenses. You will receive a status message when we estimate that your account will be depleted in less than 3 months. Whenever you replenish your account, we suggest that you increase the balance to last an estimated 18 months.
You can replenish your Income Management Account by transferring money from other accounts into your IMA. Use electronic funds transfer (EFT) to move money from non-Fidelity accounts to your Fidelity investment account and then simply transfer money from your Fidelity accounts into your IMA. Because the implications on the viability of your retirement can be complex, we suggest that you call your account representative at 800-544-6666 to discuss the best way to replenish your Income Management Account.
The Cash Flow column on the Income Management: Summary page shows your non-investment income for the last 30 days, month-to-date, year-to-date, or a rolling 12-month average. If you have less than 12 months of account activity, the 12-month average is based on the number of months of available data (you must have at least one full month of available data).
In the Cash Flow column on the Income Management: Summary page, total non-investment income is detailed as follows:
Non-investment income may include transfers of principal. The entire amount listed may not be taxable income and may not reflect adjustments necessary for tax reporting purposes.
Note: If you received Social Security checks or income from pensions not deposited into your IMA, these amounts will not be reflected in your account's income figures. For example, if you transfer funds via electronic funds transfer (EFT) from a bank account, these funds are not reflected in your Income Management Account non-investment income even if the funds originally came from a pension or the Social Security Administration. Instead, they show up as Additions From Your Portfolio. If you write a check from your bank account, however, we will include the value of that check as part of your non-investment income (but not count it as Social Security or Pension income).
The spending figure represents all the outflows from your Income Management Account, including checks, bill payments, debit card purchases, and other withdrawals. The spending figure does not include transfers to Fidelity accounts, which are counted as reinvestments to your portfolio. It does include Personal Withdrawal Service or electronic funds transfer (EFT) transfers to outside accounts (such as bank accounts).
The Cash Flow column on the Income Management: Summary page shows your spending for the last 30 days, month-to-date, year-to-date, or a rolling 12-month average. If you have less than 12 months of account activity, the 12-month average is based on the number of months of available data (you must have at least one full month of available data).
To see a detailed transaction history for your Income Management Account (IMA), click View Detailed Transaction History to display the History page. The History page shows all transaction types (trades, checks and bills paid, wire transfers, and so on) for your IMA for the past 30 days. You can exclude transaction types from the list of transactions, and you can change the time period and sort order of the list.
If your spending exceeded non-investment income for the selected time period, the Income Management: Summary page displays a gap amount, which was filled by withdrawing assets from your IMA.
If your non-investment income exceeded your spending for the selected time period, the Income Management: Summary page displays a surplus amount, which represents a replenishment of the assets in your account.
The planned monthly asset withdrawal amount is taken from your Retirement Income Portfolio plan of record. When you create or update your plan of record, you specify monthly expenses for your retirement. Fidelity calculates your planned asset withdrawal amount for each calendar year of your retirement based on your expected non-investment income and expenses.
Your 12-month average asset withdrawal is a 12-month rolling average of the asset withdrawal from your Income Management Account. If less than 12 months of account activity is available, the average asset withdrawal figure is calculated using the number of months of available data. At least one month of data must be available to calculate average asset withdrawal.