PANEL ONE: EMERGENCY FUNDS AND RISK
01.Core Concepts
MANAGEMENT PORTFOLIO-RELATED RISKS (4 of 4) • Superannuation • The fear of outliving assets • Mitigate superannuation • Defined benefit plans (harder to find companies offering them today) • Annuities can provide fixed income stream. • Disadvantages: Funds would not be available for unexpected emergencies or opportunities. • Combination of annuitized annuities, deferred annuities, Social Security and company retirement plan (typically a defined contribution plan) • Qualified longevity annuity contract (QLAC) • Provide income • Reduce the amount of RMDs that must be made each year • Source of inflation protection PANEL ONE: EMERGENCY FUNDS AND RISK MANAGEMENT MITIGATION OF OTHER RISKS • Financial Exploitation • The Older Americans Act defines financial exploitation as “The fraudulent or otherwise illegal, unauthorized, or improper act or process of an individual, including a caregiver or fiduciary, that uses the resources of an older individual f or monetary or personal benefit, profit, or gain, or that results in depriving an older individual of rightful access to, or use of, benefits, resources, belongings, or assets.” • Indications a client may be experiencing financial exploitation: • sudden changes in financial account balances, • large unexplained withdrawals, • abrupt changes to the will or other financial documents, • unpaid bills, • increased fear or anxiety, • isolation from family and friends, or • withdrawal from normal activities.