Previous generations of retirees relied on conservative, income-producing investments to get them through retirement. But today's Baby Boomers will have longer and more active retirements than ever before. Can traditional approaches to retirement investing keep up? Consider the following:
- People are living longer—There's a 50% chance that one spouse in a married couple will live to age 91
- Retirees are spending more—55% of actual retirees report that their spending in retirement is about the same or higher than it was before retiring
- Inflation isn't going away—You need to earn a minimum of 3-4% on your investments just to break even
This means you have to invest wisely to make your retirement savings last. The good news is that today's retirees have a huge selection of investments that offer both growth potential and regular income—not just here, but around the globe.
Expand the Boundaries of your Retirement Portfolios with Global Investing
Add to Your Investment Universe
Massive changes in the global economy have gradually shifted the investment universe from primarily U.S.-based to truly global. In 1980 only about 38 percent of the world's investments were located overseas. Today more than half of them are. Global investing means more opportunities, and choices, for both growth and income.
Source: Morningstar, Inc. as of 12/31/07
Past performance does not guarantee future results. Values are expressed in U.S. dollars.
Reduce overall portfolio risk
People may perceive that international investing is more risky, but in reality adding a 25% allocation of international stocks to a domestic portfolio slightly decreased overall portfolio risk, while providing comparable returns (over the ten-year period ending 12/31/2007)
Source: Morningstar, as of 12/31/07
Past performance is no guarantee of future results. U.S. stocks are represented by the S&P 500 Index, international stocks by the MSCI EAFE Index. Index disclosures are at the bottom of the page. Performance shown is historical and not indicative of any ING Funds' Fund performance and does not account for fees and expenses associated with investing in funds. Investors cannot invest directly in an index.
How A Global Approach Can Meet the Needs of Retirees
Retirees need both a steady stream of income and enough growth potential to make their savings last. Here are some of the most common needs of retirees, and how global investing can help meet them.
Continued Growth Investing
Why “retire” your international investments when you do? Since January of 1998, International stocks, as represented by the MSCI AC World EX US Index, have outperformed the U.S. stock market. Investors may need that kind of growth potential to help their assets last all the way through retirement.
Source: Russell Mellon Analytical. Index Return at Price
Past performance is no guarantee of future results. Performance shown is historical and not indicative of any ING Funds' Fund performance and does not account for fees and expenses associated with investing in funds. Index disclosures are at the bottom of the page. Investors cannot invest directly in an index.
ING Diversified International Fund combines many managers, styles and sectors in one all-purpose non-US stock fund.
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Dividend Income
Retirees have historically relied on stock dividends for much of their income needs during retirement. Did you know yields overseas have been consistently higher than in the U.S. for the past ten years? Stock dividends are an important source of income during retirement.
Source: Bloomberg, as of 12/31/07
Past performance is no guarantee of future results. Performance shown is historical and not indicative of any ING Funds' Fund performance and does not account for fees and expenses associated with investing in funds. Index disclosures are at the bottom of the page. Investors cannot invest directly in an index.
ING Global Equity Dividend Fund looks for the highest dividend income from growth companies around the globe, not just in the U.S.
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Growth Combined with Income
Real Estate Investment Trusts (REITs) have long been a popular investment vehicle in the U.S. because they combine capital appreciation potential with regular income. But REIT dividends have actually been higher in many other countries.
Source: EPRA/NAREIT as of 12/31/07
Past performance is no guarantee of future results. Yields fluctuate and are not guaranteed.
ING Global Real Estate Fund expands the focus to include the many overseas markets, such as the Far East, where commercial real estate is growing at a faster pace than in the U.S.
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Fixed Income
Bonds have always been a big part of retirees' portfolios. What's changed is that overseas bonds now outnumber U.S. bonds —and many countries have historically paid higher income than the U.S.
Source: Bloomberg, as of 12/31/07
Past performance is no guarantee of future results.Yields fluctuate and are not guaranteed.
ING Global Bond Fund can choose from a much wider selection of bonds by including not only U.S. but overseas bonds.
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The Global Investing Advantage
ING Funds, a leader in global and international investing, has designed an investment toolkit to help your clients understand how global and international investing can help retirement savings last longer.
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Risks & Disclosures
- The Standard & Poor's 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
- The MSCI Europe, Australasia and Far East Index (EAFE) is an unmanaged index that measures the performance of securities listed on exchanges in markets in Europe, Australia and the Far East.
- The MSCI All Country World ex-U.S. Index is an unmanaged index that measures the returns of equities of companies which are domiciled outside the U.S.
- MSCI U.S. Index is an unmanaged index that measures the performance of 85% of the free float adjusted market capitalization securities in each industry group in the U.S.
Investors cannot invest directly in an index.
General Risk(s):
Domestic Equity: Exposure to financial and market risks that accompany investments in equities. Investing in funds that are concentrated in a smaller number of holdings poses greater risk than funds with a larger number of holdings because each investment has a greater effect on the Fund's performance.
Fixed Income: Exposure to financial, market, prepayment and interest rate risks. The value of an investment in the Fund is not guaranteed and will fluctuate. Higher yielding bonds are subject to greater volatility and credit risks. The Fund invests in securities guaranteed by the U.S. Government as to timely payment of interest and principal, but fund shares are not insured or guaranteed. Bonds have fixed principal and return if held to maturity, but may fluctuate in the interim. The principal risks of investing in the Fund are those generally attributable to bond investing, including increases in interest rates. Generally, when interest rates rise, bond prices fall. Bonds with longer maturities tend to be more sensitive to changes in interest rates.
International: The principal risks of investing are those generally attributable to stock investing. International investing does pose special risks, including currency fluctuation, economic and political risks not found in investments that are solely domestic. The Fund may invest in companies located in countries with emerging securities markets when the sub-adviser believes they present attractive investment opportunities. Risks of foreign investing are generally intensified for investments in emerging markets.
REITs: These companies are sensitive to factors such as changes in real estate values and property taxes, interest rates, cash flow of underlying real estate assets, supply and demand, and the management skill and credit worthiness of the issuer. REITs may also be affected by tax and regulatory requirements.
For more complete information, or to obtain a prospectus on any ING fund, please call your Investment Professional or ING Funds Distributor, llC at (800) 992–0180 or log on to www.ingfunds.com. The prospectus should be read carefully before investing. Consider the fund's investment objectives, risks, and charges and expenses carefully before investing. The prospectus contains this information and other information about the fund. Check with your Investment Professional to determine which funds are available for sale within their firm. Not all funds are available for sale at all firms.