section 1 - The American College Online Learning Center

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d. Solutions(1) <strong>The</strong> model considers a wide range of possible life trajectories.(2) Some will live longer than expected.(3) <strong>The</strong> most compelling reason for the shortfall is the contingency of requiringlong-term care for a significant amount of time.(1) Long-term care insurance(2) Understand and maximize employer provided benefits(3) Like others, need a savings plan—especially for business owners(4) Deferring Social Security8. Retirement readiness for the middle class (Video: How well is the middle class preparedfor retirement? Littell, Tacchino, VanDerhei)a. Only 50% chance of having sufficient assets to meet retirement needs (basicexpenses plus reimbursed medical costs)b. Middle income solutions(1) Participate in the employer plan.(2) Save early.(3) Save retirement plan distributions when changing jobs.(a) Low income and small distributions are most likely to be spent—andnot rolled over.(b) Be concerned about those who are automatically enrolled whohave the option to receive retirement benefits.c. What portion of the shortfall represents costs from unexpected health care andlong-term care costs?(1) About 50% of the retirement income shortfall is a result of some individualsincurring a catastrophic event affecting health care costs and long-termcare needs.(2) Insuring against these catastrophic events significantly improves the oddsfor income adequacy.LO 1-2-3: Know consumer attitudes about preparedness for retirement1. Retirement Confidence Survey by EBRI and Mathew Greenwald (Video: What Doesthe EBRI Retirement Confidence Survey Tell Us about Retirement? Littell, Tacchino,VanDerhei)a. Annual survey ongoing for 21 yearsb. Interview 1,000 workers and 250 retirees2. Overall confidence of workersa. A 2011 survey showed more pessimism about retirement readiness today thenany time in the last two decades.b. 27% of workers are not at all confident that they are prepared for retirement.c. Drop of confidence has not translated into a higher savings rate or additionalplanning.d. High percentage of workers simply guess whether they are prepared for retirement.3. Workers expect to retire later.1.10
Page 1: Huebner School SeriesHS 353 STUDY O
Page 6: THEAMERICANCOLLEGE.EDUThrough The A
Page 10 and 11: c. But it is more comprehensive bec
Page 12 and 13: (3) Work part-time during retiremen
Page 14 and 15: SECTION 2: UNDERSTANDING RETIREMENT
Page 18 and 19: (1) It will identify:(a) Long-term
Page 20 and 21: (1) Use appropriate tax-advantaged
Page 22 and 23: (1) One issue is when does the clie
Page 24 and 25: (2) Develop recommendations based o
Page 26 and 27: (2) Altruistically, who do you beli
Page 28 and 29: 4. Client communications(1) Model a
Page 30 and 31: h. Also, it is very difficult to su
Page 32 and 33: RESOURCES FOR COMPETENCY 1: CREATE
Page 34 and 35: 3. Quantitative questions(3) What i
Page 36 and 37: think about lifestyle. To help with
Page 38 and 39: a. Most investors are at least some
Page 40 and 41: (3) Is the client willing to make c
Page 42 and 43: (1) Most sources of retirement inco
Page 44 and 45: c. Duration — identifying the dur
Page 46 and 47: a. Employer sponsored tax-advantage
Page 48 and 49: (3) Medicare available at age 65(4)
Page 50 and 51: (3) Clients need to know these calc
Page 52 and 53: (1) Advisors generally do not under
Page 54 and 55: SECTION 2: ADDITIONAL WORKLO 3-2-1:
Page 56 and 57: (3) Retire at age 67 and assets are
Page 58 and 59: (1) If eligible, planners should re
Page 60 and 61: (3) The single taxpayer contributio
Page 62 and 63: . Nonqualified deferred compensatio
Page 64 and 65: (2) Exception for 403(b) plan parti
Page 66 and 67:
. Look for opportunities to convert
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. Solution(1) Achmed is single, age
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. Solution(3) Because of their curr
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5. Framing the issue as an annuity
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SECTION 5: TAP HOME EQUITYLO 3-5-1:
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(1) A conventional strategy is to t
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(1) Using home equity as an emergen
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(1) Institutional class shares typi
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. This is the same as the Roth acco
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Assignment 4EVALUATE THE INCOME TAX
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e. Defined-contribution plans(1) Va
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d. Roth Accounts in 401(k)/403(b)/g
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(2) Under this rule, the distributi
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7. Pre-59½ penalty taxtax rate in
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a. Is the distribution from a Roth
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a. During lifetime, the calculation
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. Failure to read the plan to see i
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(c) Single taxpayer can exceed $60,
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e. Annuitization(1) The tax treatme
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c. When will the beneficiaries rece
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(1) Outright(2) In trustb. Much or
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(2) If beneficiaries would need to
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LO 4-2-2: Strategies for meeting ch
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10. Timing of funding(5) Gifted ass
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15. Taxation of payments(1) High in
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22. Final thoughts(1) S election is
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f. It is appropriate to elect a suc
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(1) Often employed as a vehicle to
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a. Propertyb. Trustees(1) Trust ide
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Assignment 5EVALUATE RETIREMENT RIS
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g. Most planners believe the safe h
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h. Example: Rick will have a primar
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it is analogous to having a very hi
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income stream for their advanced ye
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of it. However, because stocks are
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Retirement Income Checklist:Does Yo
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manager can even help your clients
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for the duration of the three years
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e. The specifics of how these plans
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Retirement Income Checklist: Does Y
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2 $4,900 -20% $3,920 $1,100 $2,8203
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c. Example 2: If clients want a lad
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a. Forced retirement riskb. Reemplo
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8. Loss-of-spouse risk involves the
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etire. This grave oversight could b
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(2) Co-pay and contributions are ce
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a. Helps to potentially minimize:(1
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6. Capitalize on the value of the h
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(2) Timing risk—Laddered bonds an
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21. Unrealistic expectation risk22.
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(9) In addition to inflation and lo
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However, planning can proceed accor
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LO 6-1-2: Understand the FPA’s
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5. Products used by surveyed adviso
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5. Since markets have varying outco
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16. Early in the outline, we identi
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$300,000 portfolio with a 4% withdr
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(2) When initially established, the
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. The floor might be different for
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(2) It serves as a form of mental a
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(3) Income rider benefits in a vari
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a. Inflation risk is best addressed
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employed will receive a lower repla
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Assignment 7INTEGRATING APPROACHES,
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(1) Coverage for bank failure or in
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(2) Markets(a) Emerging markets(b)
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2. Credit qualitya. Credit quality
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LO 7-1-4: Using mutual funds and ot
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(2) Sector(3) Other10. Classifying
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(1) Benchmarking mutual funds(2) Ap
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(1) Example: One approach is to cov
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(1) Deferred annuities may waive su
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stocks which might have wide disper
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a. Investment company is the genera
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. The products that are used need t
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i. Data gathering about goals may c
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a. Sample questions to identify how
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(3) Is the client following the pla
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c. We need an early-warning system
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c. The “guardrail” steers the c
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e. Lisa has a checking account with
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section 1 - The American College Online Learning Center

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