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Insurance & Risk Management
12. Chapter 14: Annuities and Individual Retirement Accounts/Adequacy of IRA funds
12. Chapter 14: Annuities and Individual Retirement Accounts Illustration
Syllabus Slides

Adequacy of IRA funds

01.Core Concepts

Unless a life annuity is purchased, retirees face the risk of still being alive after the IRA account is exhausted Financial planners generally recommend that the initial withdrawal rate should be limited to 4% to 5% of IRA assets Many planners now use Monte Carlo simulation techniques to give a more realistic outlook of the future ‹#›