Retirement – 44 Flashcards Preview

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Flashcards in Retirement – 44 Deck (12)
1

(44.2) Three phases of retirement

Accumulation
Consolidation
Distribution

2

(44.2) Retirement planning phase: capital ___ occurs during months working years, roughly between ages 30 and 55.

Accumulation

3

(44.2) Retirement planning phase: client restructures the investment portfolio to a more conservative allocation that will be subject to less fluctuation in asset value.

Consolidation

4

(44.2) Retirement planning phase: the retiree is collecting from private investments, Social Security, any employer sponsored qualified or nonqualified plans, and individually directed qualified plans, such as IRAs and Roth IRAs.

Distribution

4

(44.4) Two ways to set up a projection of desired retirement income

Income replacement ratio
Retirement income analysis

5

(44.11) If the client is concerned about outliving his or her assets, the client might want to consider purchasing?

An annuity or using the capital preservation method

7

(44.11) capital preservation method

Assumes the client will live on the earnings generated by his or her investment portfolio

7

Examples of guaranteed lifetime income streams

Pension and Social Security

8

(44.11) Capital utilization method

Assumes all assets are gradually liquidated during retirement to meet the client's objectives

9

(44.4) The ___ method requires a client to estimate a ballpark percentage of pre-retirement income which appears to be adequate to provide a standard of living at retirement, comparable to that being enjoyed pre-retirement. This method is appropriate when retirement is ___.

- income replacement ratio
- a decade or more in the future

10

(44.12) A single premium deferred annuity that a structure to begin payout at a specific age typically around age 85.

Longevity insurance

11

(44.4) The __ method requires more systematic gathering of client information and should be used when the client approaches retirement.

retirement income analysis