OVERVIEW OF THE FINANCIAL ASPECTS OF RETIREMENT
01.Core Concepts
INCOME AND DISTRIBUTION PLANNING • Financial planners must manage all the following factors, among others: • Longevity • Inflation • Social Security and Medicare • Health and long-term care needs • Asset allocation • Tax and distribution rules • Withdrawal rates LONGEVITY • One of the biggest challenges for retirement distribution planning • Planning for too short could leave a client short funds to maintain their desired lifestyle in retirement. • Planning for too long could result in lost opportunities for enjoyment during the saving phase. • Clear communication is imperative. • Family longevity history • Client's current health (and that of family) • Risk tolerance • Standard life expectancy tables are a good starting point. • Life expectancy at age 65 is an appropriate amount. • Female life expectancy is about 20 years, while male life expectancy is about 18 years.