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Controllable vs. Uncontrollable : Navigating risks to a retirement spending plan

Topic

Retirement Savings and Income Planning

Program ID

326021

Hours

1

Format

Live / Other

Complexity

Intermediate

Description

This presentation uses a Monte Carlo score to help better understand the impact of changing factors clients can control as well as how sensitive their portfolio may be to uncontrollable risks. Additionally, we’ll evaluate the efficacy of adding a registered index-linked annuity with guarantee lifetime income to a traditional equity and bond portfolio to help clints better handle the uncontrollable risks they may face in retirement. The four major uncontrollable risks we will measure are longevity, market returns, inflation, and portfolio shocks.

Learning Objectives

Learn about what happens when you go deeper into the factors available in a Monte Carlo analysis to stress test a portfolio’s retirement outcomes. We’ll discuss risks you can help clients control when advising them on their retirement plans and how each recommendation affects the plan’s chance of success. Then we will discuss uncontrollable factors and how big of an impact they can have on a retirement plans. We’ll show a traditional portfolio versus a modernized portfolio allocation which will include a RILA with the opportunity for increasing income.