Retirement Income Distribution: Four Methods

General Description:

Participants will learn about the four most common retirement income distribution options, their sustainable income levels, and the advantages of each, as well as the pros and cons of annuity income riders. Several example cases will be provided to demonstrate the implication of random capitalization disorder risk. This seminar is a suggested prerequisite for Social Security Benefits and Lifetime Retirement Income Planning.

Learning Objective:

After completing this course the participant will be able to:

• Explain the history of retirement income planning and demographic changes.
• Describe the shift in research over the past two decades and the shift in market focus.
• List financial planning considerations and client objectives which must be considered in developing an overall retirement income plan.
• Identify the five necessary tasks of any retirement plan.
• Summarize the four most common methods used for retirement income distribution: immediate or future annuitization, guaranteed withdrawal income riders, withdrawal method, and laddering (time segmented).
• Assess the inefficiencies of the withdrawal method (the most popular method).
• Apply random capitalization disorder risk to various strategies.
• List the four income riders found on equity income and variable annuities.
• Differentiate between the fictitious number used to calculate guaranteed lifetime income and the "real" annuity account.
• Identify various techniques used to build income ladders.

Instructors:

Daniel C. Flanscha is president of Longs Peak Education and has more than 25 years experience in the financial services industry, including working for a Fortune 500 company as one of its top 100 managers. He earned a bachelor's degree from Iowa State University and is a Chartered Life Underwriter (CLU), Chartered Financial Consultant (ChFC), and Certified Financial Planner (CFP).

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