BMO Bank of Montreal today announced the launch of BMO Income Generator, a guaranteed investment solution that can be customized to earn interest and automatically provide investors with a steady stream of monthly income over a five-year term.

Unlike traditional GICs, BMO Income Generator is a guaranteed investment solution for conservative investors who wish to protect their capital, while receiving a steady stream of monthly income. Each equal monthly payment may be comprised of both principal from the original investment and interest or interest alone. Based on individual needs, the investor determines the monthly payment amount and the date on which to receive it. BMO Income Generator is available in a five-year term that allows investors to re-assess their monthly income needs in manageable five-year increments.

“Since one in two Canadian boomers will live into their nineties, planning for a 20 – 30 year retirement is a new reality. It can be overwhelming to plan for such a long time-frame, so arranging for and re-assessing your financial needs in five-year increments is a simple strategy with built-in flexibility,” said Julie Sheen, vice president, BMO term investments, in a news release.

“Breaking retirement income down into monthly payments is a practical way for pre-retirees and retirees to conceptualize how they’re going to fund their lifestyle in retirement,” said Sheen. “While some investors are looking to supplement their various sources of income, such as pensions and registered income, to finance the lifestyle they want in retirement, others could be figuring out what they want to do with a lump sum of money from an inheritance, downsizing their home or selling a business.”