Managing Retirement
"I have a client who wants to know how to manage retirement"...What a planner needs to understand about retirement risks and retirement readiness
What macroeconomic risks do clients face in retirement?
(Anna Rappaport, F.S.A., M.A.A.A. and Kenn Beam Tacchino, JD, LLM and Walt Woerheide, PhD, CFP®)
We look at market risk, investment risk, timing risk, public policy risk, and inflation risk. We learn strategies to deal with these risks.
What are the major financial risks of extended life?
(Anna Rappaport, F.S.A., M.A.A.A. and Kenn Beam Tacchino, JD, LLM and Walt Woerheide, PhD, CFP®)
We discuss the implications of living to an older age. We learn about several products and strategies that can be used including annuities, ALDAs, delayed Social Security claiming, long term care insurance, and increasing equity holdings in the portfolio.
What are the employment-related risks clients face?
(Anna Rappaport, F.S.A., M.A.A.A. and Kenn Beam Tacchino, JD, LLM and Walt Woerheide, PhD, CFP®)
We look at factors that force an early retirement. We learn that over 4 in 10 people retire earlier than planned.
What are some unfortunate events with which retirees must cope?
(Anna Rappaport, F.S.A., M.A.A.A. and Kenn Beam Tacchino, JD, LLM and Walt Woerheide, PhD, CFP®)
We look at the implications of financial fraud, property casualty issues, and the financial needs of family members. We learn not to let the family take more than the retiree can afford to give and how to recognize and cope with the other threats.
What health care risks do clients face in retirement?
(Anna Rappaport, F.S.A., M.A.A.A. and Kenn Beam Tacchino, JD, LLM and Walt Woerheide, PhD, CFP®)
We discuss the financial and physical risks clients face in retirement. We learn how to protect ourselves against the advent of bad health and frailty with traditional financial planning solutions and support networks.
What affect does the loss of a spouse have on retirement security?
(Anna Rappaport, F.S.A., M.A.A.A. and Kenn Beam Tacchino, JD, LLM and Walt Woerheide, PhD, CFP®)
We discuss the affect of a spouse dying on the widow(er). We learn that clients underestimate the impact of a death on their financial security and that for every $1,000 a couple requires the widow(er) will require $750.
How can disability derail a retirement plan?
(Anna Rappaport, F.S.A., M.A.A.A. and Kenn Beam Tacchino, JD, LLM and David A. Littell, JD, ChFC®, CFP®)
We look at the impact that long term disability has on retirement. We learn how the client is treated different if they have a defined-benefit plan instead of a defined contribution plan.
What issues need to be considered by near retirees to make informed retirement decisions?
(Anna Rappaport, F.S.A., M.A.A.A. and Kenn Beam Tacchino, JD, LLM and Walt Woerheide, PhD, CFP®)
We examine a laundry list of decisions facing a person about to retire. We learn that planning involves many, many considerations.
What methodology should advisors use to see if a client is ready for retirement?
(Anna Rappaport, F.S.A., M.A.A.A. and Kenn Beam Tacchino, JD, LLM and David A. Littell, JD, ChFC®, CFP®)
We look at the decisions that must be considered in order for a client to retire. We learn that there are both financial and life planning issues that need to be considered.
What is the value of retirement planning software?
(Anna Rappaport, F.S.A., M.A.A.A. and Kenn Beam Tacchino, JD, LLM and Walt Woerheide, PhD, CFP®)
We examine web-based software. We conclude it is flawed and suggest that people use two or more sites and compare the results.
What are the retirement decisions facing most clients?
(Anna Rappaport, F.S.A., M.A.A.A. and Kenn Beam Tacchino, JD, LLM and Walt Woerheide, PhD, CFP®)
We examine a variety of retirement decisions facing your client. We conclude that the help of an advisor is necessary and we become aware of how different decisions interrelate.
What is productive aging?
(Anna Rappaport, F.S.A., M.A.A.A. and Kenn Beam Tacchino, JD, LLM and Walt Woerheide, PhD, CFP®)
We discuss the importance of meaning and significance in retirement. We learn that creating a portfolio of activities is a good strategy to help induce productive aging.
What are the phases of retirement?
(Anna Rappaport, F.S.A., M.A.A.A. and Kenn Beam Tacchino, JD, LLM and Walt Woerheide, PhD, CFP®)
We look at planning for the things that can change in retirement. We learn about the spectrum of limitations imposed on the client as they age.
What is the impact of deferring retirement age on retirement income adequacy?
(Jack VanDerhei and Kenn Beam Tacchino, JD, LLM and David A. Littell, JD, ChFC®, CFP®)
We review data about the impact of deferring retirement and learn that deferral has the most significant impact on the retirement readiness of lower-income workers.
Have retiree financial attitudes changed since 2008?
(Anna Rappaport, F.S.A., M.A.A.A. and Kenn Beam Tacchino, JD, LLM and David A. Littell, JD, ChFC®, CFP®)
We look at client attitudes before and after the economic decline of 2008. We see minor changes in the use of advisors and risk tolerance. We see major changes in controlling spending.
What is the retirement readiness of those nearing retirement age?
(Jack VanDerhei and Kenn Beam Tacchino, JD, LLM and David A. Littell, JD, ChFC®, CFP®)
We discuss the data showing that Americans currently are facing a four and one-half trillion dollar retirement shortfall. We learn about which groups are more at risk of having insufficient assets to meet even basic needs in retirement.
What is the retirement readiness of high net worth individuals nearing retirement?
(Jack VanDerhei and Kenn Beam Tacchino, JD, LLM and David A. Littell, JD, ChFC®, CFP®)
We discuss the surprising data showing that even high net worth individuals are at risk of having inadequate assets to meet even basic retirement needs. We learn strategies for addressing this concern.
How well is the middle class prepared for retirement?
(Jack VanDerhei and Kenn Beam Tacchino, JD, LLM and David A. Littell, JD, ChFC®, CFP®)
We look at statistics regarding the financial readiness of the middle class for retirement. We learn that costs for end of life care are a major impediment to a secure retirement.
What does the retirement readiness data tell us about opportunities for financial advisors?
(Jack VanDerhei and Kenn Beam Tacchino, JD, LLM and David A. Littell, JD, ChFC®, CFP®)
We look some of the key data concerning the size, retirement readiness, pension coverage, and retirement confidence of baby boomers in order to try and understand some of the opportunities for financial advisors working with this cohort.
What Does the EBRI Retirement Confidence Survey Tell Us about Retirement?
(Jack VanDerhei and Kenn Beam Tacchino, JD, LLM and David A. Littell, JD, ChFC®, CFP®)
We look at the EBRI Retirement Confidence Survey. We learn that there is a disconnect between what people expect for their retirement and what they need to do for their retirement.
How Have Pension Changes in the Past Ten Years Affected Retirement Planning?
(Jack VanDerhei and Kenn Beam Tacchino, JD, LLM and David A. Littell, JD, ChFC®, CFP®)
We examine automatic enrollment, automatic escalation, qualified default investment alternatives, target date funds, and rules liberalizing the ability for employers to provide specific retirement advice for their employees. We learn that retirement planning was improved by these changes.
What Happened to the Defined Benefit Plan?
(Jack VanDerhei and Kenn Beam Tacchino, JD, LLM and David A. Littell, JD, ChFC®, CFP®)
We look at why defined-benefit plans have declined. We learn that a variety of factors combined to lead to a decline from 38% to 15% in the private sector.
How much do baby boomers need to save for retirement?
(Jack VanDerhei and Kenn Beam Tacchino, JD, LLM and David A. Littell, JD, ChFC®, CFP®)
We review how much more baby boomers need to save in order to eliminate the retirement shortfall that they currently face.
What are some of the basic costs of retirement?
(Jack VanDerhei and Kenn Beam Tacchino, JD, LLM and David A. Littell, JD, ChFC®, CFP®)
We review the costs of retirement healthcare/long-term care and the traditional notion of replacement rates. We learn that in order to have a high degree of certainty that assets will last a life-time that traditional replacement rate approach substantially underestimates the required need.
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