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Solving the three challenges of retirement

1. Keeping pace with inflation

Real Income protects your standard of living by increasing your annual income with the rate of inflation.


2. Generating stable income

Real Income gives you predictable, stable income that won’t change with the market.


3. Planning for longevity

Real Income uses a scientific approach to reduce the chance you will outlive your money.

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How you invest to build a retirement nest egg is very different from how you invest to create long-lasting retirement income. The goal is no longer to accumulate wealth, but to generate stable income that will keep pace with inflation and last for as long as you need it.

That’s what Sentry Real IncomeTM is for.

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The Sentry Real Income EngineTM is technology that helps you and your financial advisor find the optimal balance between the value of your portfolio, the level of income you desire and how confident you want to be that your money will last during retirement.
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Your financial advisor will recommend either a Sentry Real Income Managed Portfolio or a Real Income Custom Solution. Both options will allow you to benefit from real, inflation-adjusted income that automatically adjusts every year to protect your standard of living.

The Real Income EngineTM helps you see the trade-offs involved in retirement planning.

For example, a lower Confidence Level means higher Real Income, and vice versa. Work with your financial advisor to find the right balance for you.

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Six reasons to get Real

Clear answers

Gain a better understanding of how much you can afford to spend in retirement comfortably and confidently.

Inflation protection

Receive inflation-adjusted income and not simply a fixed withdrawal amount.

Longevity planning

Plan for the potential of a long retirement using a mathematical model that can predict the probability of income lasting in retirement.

Pension-style investing

Invest in traditional and alternative asset classes optimized to match portfolio cash flows with your future income needs.

Stable income

Invest in a mix of traditional and alternative asset classes designed to deliver stable, predictable income from month to month.

Ongoing advice

Meet your advisor regularly to review your results and make any adjustments, including the freedom to access your money at any time.

Is Real IncomeTM right for you?

Start by having a conversation with your financial advisor.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

“Inflation-adjusted income”, “annual income”, and “Real Income Withdrawals”, as used herein refers to the amount received through a systematic withdrawal plan that, in the second year of investment and each year thereafter, automatically increases (or decreases) on January 1st based on the Bank of Canada’s reported 12-month change in the seasonally adjusted Canadian CPI, as at November 30th of the previous year. For Sentry Real Income Managed Portfolios, the withdrawal amount is determined and initiated by the fund; for Sentry Real Income Custom Solution, the withdrawal amount is determined and initiated by the financial advisor. The income, in both cases, can be a combination of capital appreciation and income, as well as the original principal.

Sentry Real Income Managed Portfolios are generally designed for those investors born between the years specified in the simplified prospectus and may not be optimal for investors outside of those age ranges.

Although designed with a high degree of probability, the longevity of assets and the Real Income withdrawals are not guaranteed. If redemptions exceed what the portfolio is earning, investors will eventually deplete their original investment and they will no longer receive income.

The confidence level component offered by the Sentry Real Income Managed Portfolios and Sentry Real Income Custom Solution determines the probability that the capital and investment growth will provide stable, inflation-adjusted income through retirement. The length of retirement is defined using a predetermined age for the Sentry Real Income Managed Portfolios, while the Sentry Real Income Custom Solution also incorporates longevity probabilities from Statistics Canada mortality tables.

The confidence level is determined using historical volatility and correlations of each asset class, which were used to forecast returns and volatility, on a real (inflation-adjusted) basis. For the Sentry Real Income Managed Portfolios, the forecasted returns and volatility, along with an initial income level for each purchase option birth year, were used to generate 1,000 simulations of potential outcomes over time. The initial Real Income Withdrawal amount for each purchase option birth year was chosen in order to provide a 95% probability (95% of the 1,000 simulations) that the inflation-adjusted income, would last to, and through, 90 years old. For the Sentry Real Income Custom Solution, the forecasted returns and volatility, along with the initial Real Income withdrawal amount are used in conjunction with longevity probabilities derived from Statistics Canada mortality tables, to determine the confidence level. The probability of payments lasting decreases with each subsequent year beyond age 90.

The confidence level is determined at the time of purchase and will fluctuate due to various factors including market events, investor activity and unforeseen circumstances. This fluctuation can increase or decrease the likelihood that the invested capital may be depleted prior to or after the determined age.