Retirement Income Planning

Catalog description

This course is intended to explore how financial planning practitioners bridge the gap between client's wealth and their cash flow needs during retirement. To do this we will explore the implications of longevity, inflation and return volatility on client funding needs. Students will create a pro-forma retirement budget in order to define both base and discretionary spending levels. Students will then use both Probability-based and Safety-first methods to determine appropriate asset allocations based on client risk tolerance and capacity. Comparisons will be made between Annuitized products (including Social Security) and capital assets to better understand the risks of both. Students will also explore alternative retirement products such as LT Care Insurance, Longevity Insurance, and Reverse Mortgages as ways to hedge against running out of assets during retirement.