Retirement (Accumulation)
The Retirement (Accumulation) module is used to facilitate a discussion of planning for and accumulating a retirement portfolio. The module is designed to help clients who are not retired, and who have time before they retire, to build an adequate retirement portfolio by saving more and by properly managing the portfolio and other spending goals. The Retirement (Accumulation) module allows the input of an unlimited number of spending goals including education and extraordinary goals such as world travel or large purchases and illustrates how much these goals may be expected to cost. The focus of the module is to determine amounts that need to be saved currently in order to meet future goals including retirement spending goals.
Module Target User – Advisors
Completion Time – 20 to 40 minutes
This module:
- Helps a client identify retirement spending goals
- Analyzes a client’s current retirement situation by calculating the resources available for retirement (including estimate of Social Security)
- Illustrates the percentage of the goal funded by currently available resources
- Calculates the monthly accumulation needed to reach retirement goals using three different types of accounts (taxed, tax-deferred, tax exempt)
- Emphasizes the importance of investing for retirement now
- Provides educational information on topics such as the impact of inflation and the tradeoffs of risk and return
- Allows the planner to model multiple retirement spending patterns and compare the results of the risks a client might face in retirement, using scenario and what-if capabilities
- Addresses Social Security, pensions, annuities, life insurance, tax advantaged accounts, legacy planning, debt planning, and other features
- Uses Monte Carlo Simulation to illustrate the likelihood of meeting goals using a specific retirement accumulation plan
- Syncs data automatically with the At Retirement module, allowing a planner to seamlessly change the focus of the discussion from accumulation to distribution