08/15/2012

MANAGING Your Retirement Income

Your Income and Asset Management Center

"Unless commitment is made, there are only promises and hopes; but no plans."
--Peter Drucker

Retirement income planning done right requires management of assets and income. One of the goals of retirement income planning is to meet one's needs using fewer assets. If you're not using guaranteed income products, you're probably not doing this.

Unbeknownst to many people, a significant number of investment management firms only manage client's assets. Assets under management, or "AUM" as it's referred to in the industry, is often their primary, if not sole, compensation model. As a result, income management solutions in these firms generally aren't proposed, are rarely discussed, and are often shunned.

At Retirement Income Center, in accordance with our motto, we plan, manage, and protect your retirement income. We manage your assets and your income. We aren't tied to a single compensation model. Consequently, our advice and recommendations are totally objective, independent, and in your best interest. 

Sustainable Lifetime Income Research Results

According to the Insured Retirement Institute's (IRI) April, 2012 "Boomer Expectations for Retirement" survey, guaranteed income and principal protection rate highly among the traits Boomers seek in a retirement investment.

Per Employee Benefit Research Institute's (EBRI) March, 2012 "Retirement Confidence Survey," 46% of workers surveyed were very likely (12%) or somewhat likely (34%) to purchase or choose a guaranteed income product at retirement.

The EBRI survey results are consistent with Strategic Business Insights 2010-11 MacroMonitor in which 48% of all U.S. households indicated having an interest in products that provide guaranteed income for life.

Industrywide Sustainable Retirement Income Disconnect

It's a well-known fact that income guarantees provide an income floor for retirees while also addressing longevity, investment, sequence-of-return, and withdrawal rate risks. Yet, despite this knowledge, the general unavailability of defined benefit pension plan benefits, and consumers' demand for sustainable retirement income solutions, a large number of independent financial advisors don't recommend guaranteed income solutions to their pre-retiree clients.

This was the conclusion of a joint white paper by NFP Advisor Services Group and the Aite Group. The August, 2012 study found that most consumers want retirement products with lifetime income guarantees, however, not all independent financial advisors recommend such solutions.

The study found that advisors affiliated with an independent broker/dealer recommended guaranteed income solutions 69% of the time, while advisors with an independent Registered Investment Advisor, or RIA, only recommended these types of solutions to clients 49% of the time.  

Income Management Center

Assuming that you would like to plan for sustainable retirement income, you will be happy to know that Retirement Income Center is one of the RIA's that recommend guaranteed income solutions to our clients as part of their total retirement income planning strategy when appropriate. Our immediate and deferred income strategies provide our retired clients with a dependable income floor to reduce the likelihood that they will outlive their assets.

Asset Management Center

In addition to offering income management solutions to our clients, Retirement Income Center also provides traditional asset management, or investment advisory, services. We use proprietary investment models to manage our clients' portfolios consistent with their retirement income planning needs and risk tolerance.

Our asset management strategies, balanced by our income management strategies, reduces our clients' exposure to investment and other risks compared to stand-alone investment management approaches used by most RIA's. As previously mentioned, the other risks include longevity, sequence-of-return, and withdrawal rate risks. 

Retirement Income System

Finally, our income and asset management strategies are tied together by our secure, comprehensive, dynamic retirement income planning, management, and protection system that's available to our clients at anytime from anywhere with an internet connection or mobile device. You can learn more about this leading edge system in the next section, Retirement Income System.

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