Retirement Income Redesigned
Master Plans for Distribution -- An Adviser's Guide for Funding Boomers' Best Years
Bloomberg Professional
Clients nearing retirement have some significant challenges to
face. And so do their advisers. They can expect to live far longer
after they retire. And the problems they expect their advisers to
solve are far more complex. The traditional sources of retirement
income may be shriveling, but boomers don't intend to downsize
their plans. Instead, they're redefining what it means to be
retired--as well as what they require of financial advisers.
Planners who aren't prepared will be left behind. Those who are
will step up to some lucrative and challenging work.
To help get the work done, Harold Evensky and Deena
Katz--both veteran problem solvers--have tapped the
talents of a range of experts whose breakthrough thinking offers
solutions to even the thorniest issues in retirement-income
planning:
* Sustainable withdrawals
* Longevity risk
* Eliminating luck as a factor in planning
* Immediate annuities, reverse mortgages, and viatical and life
settlements
* Strategies for increasing retirement cash flow
In Retirement Income Redesigned, the most-respected names
in the industry discuss these issues and a range of others.
About the Contributors xi
Foreword by Walter Updegrave xxiii
PART ONE: FACING THE NEW REALITIES 1
1 Boomers: A Force for Change 5
Deena B. Katz
2 Maslow Meets Retirement 17
Mitch Anthony and Lewis J . Walker
3 Decision Making at Retirement: High Stakes for the Long Haul
33
Donald G. MacGregor
4 Reinventing Retirement 49
Mitch Anthony
PART TWO: ASSESSING THE RISKS 65
5 Psychological Impediments to Retirement-Income Planning
69
Mathew Greenwald
6 Lifelong Retirement Income: How to Quantify and Eliminate Luck
77
Jim C. Otar
7 Balancing Mortality and Modeling Risk 97
Cynthia Saltzman
8 Monte Carlo Mania 117
Robert D. Curtis
9 Understanding Required Minimum Distributions 141
April K. Caudill
PART THREE: SHAPING THE SOLUTIONS 157
10 Risk Management During Retirement 163
Moshe A. Milevsky With Anna Abaimova
11 Withdrawal Strategies: A Cash Flow Solution 185
Harold Evensky
12 Asset Allocation: The Long View 203
Laurence Booth
13 Sustainable Withdrawals 217
William P. Bengen
14 Tools and Pools: Strategies for Increasing Retirement Cash
Flow 237
Robert P. Kreitler
15 Creating Portfolios With Lower Volatility 255
Louis P. Stanasolovich
16 Reverse Mortgages in Distribution Planning 281
Roxanne Alexander and Michael J. Anderson
17 Life Insurance Benefits--No Waiting 305
Douglas Head
18 Longevity Risk Insurance 311
Roger G. Ibbotson, Michael C. Henkel, and Peng Chen
19 Immediate Annuities: Structure, Mechanics, and Value
323
R. H. "Rick" Carey and Jeffrey K. Dellinger
20 The Search for Software 343
Joel P. Bruckenstein
Continuing Education Exam 353
Index 361
flaky. Nothing in this book is flaky. The expert authors are
sophisticated and knowledgeable. Their presentations are
rock-solid, comprehensive, and clear. They cover every important
aspect of the retirement problem. Any adviser or client who reads
this book will be deeply grateful to Harold Evensky and Deena Katz
for putting it together."
--Peter L. Bernstein; Author, Against the Gods: The
Remarkable Story of Risk
"Once again, Harold and Deena have succeeded in putting together
an A-team of financial experts. The end goal for this team is
to help other financial professionals do the best possible job that
they can as they guide their clients in their retirement years.
This book is a must-have for anyone advising clients through
retirement."
--J. Thomas Bradley, Jr., President, TD AMERITRADE
Institutional
"Advisers have an unprecedented opportunity to work with a
generation that has shaped history and will reshape the future of
retirement planning. Retirement Income Redesigned provides
advisers with a valuable tool for understanding and addressing the
unique needs of retiring baby boomers."
--John Iachello
Managing Director, Pershing Advisor Solutions, A service of
Pershing LLC, a member of BNY Securities Group and a subsidiary of
The Bank of New York Company, Inc.
"With 80 million baby boomers entering retirement over the
coming decades, Retirement Income Redesigned is a must-read
for financial advisers who are determined to grow their business
and add value for clients. The book provides a valuable mix of
conceptual planning principles, product guidance, and tangible
planning 'how tos' to help advisers meet the needs of their
in-and-near-retirement clients. It's a wonderful tool for gaining
insights and ideas to maximize your firm's potential in attracting
this valuable segment."
--Deborah McWhinney, President, Schwab
Institutional
financial-advisory firm in Coral Gables, Florida.
Deena B. Katz is president. Their combined experience
totals more than forty-eight years. Their innovation and skill have
earned them the loyalty of clients; their daring and dedication
have won them the respect of their peers.
Evensky and Katz are the editors of The Investment Think Tank:
Theory, Strategy, and Practice for Advisers Evensky is the
author of Wealth Management: The Financial Advisor's Guide to
Investing and Managing Client Assets; Katz is the author of
Deena Katz on Practice Management and Deena Katz's Tools
and Templates for Your Practice. Both are featured speakers at
national and international legal, accounting, investment, and
financial-planning conferences, and both are published widely and
quoted extensively in financial journals and in newspapers.