How to Give Retirees the Freedom to Spend

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About This Episode

Most clients have no idea what retirement failure means to them and how a given failure rate should influence their planning. My guests today will present a planning framework that improves existing models by dynamically adjusting for market performance and longevity.

When saving for retirement it’s common for advisors to evaluate progress toward a savings goal and recommend course corrections to stay on track. Making course corrections after retirement means that the retiree must either spend less if investment returns are low or be able to spend more if markets rise.

Clients need to understand how investment and longevity risk will affect their lifestyle as they make these adjustments to avoid running out of savings. The best way to understand how these risks might affect their lifestyle is through a visualization of spending paths. Visualizations are a powerful and accurate way to understand how spending more early in retirement, taking greater investment risk, and using an annuity change the course of possible lifestyle paths.'

About Our Guest

Tamiko Toland and Michael Finke are co-founders of IncomePath. Tamiko is its CEO and Michael is its chief strategist.

Tamiko Toland teamed up with Michael Finke to start IncomePath because she shares his vision of a better way to communicate retirement risks and help people make better decisions for retirement. She is an annuity expert and thought leader with a passion for creative approaches to educate people about the risks and solutions for their retirement needs.

‍For more than two decades, Tamiko has tracked trends and key issues related to retirement income, writing for and speaking to a variety of audiences. She most recently held leadership roles at TIAA and Cannex Financial Exchanges, an annuity data and analytics firm.

In addition to serving as IncomePath’s CEO, Tamiko runs a consulting firm that helps clients with strategy and communications on lifetime income for individual annuities as well as lifetime-income solutions offered within retirement plans. She regularly shares her perspectives with the news media and speaks at conferences and webinars.

Michael Finke is also committed to improving retirement security and helping people make better decisions for themselves and their loved ones. He is a professor of wealth management and Frank M. Engle Distinguished Chair in Economic Security at The American College of Financial Services, and a nationally known researcher in the areas of retirement income planning, retirement spending, life satisfaction, and cognitive aging.

Michael earned his doctorate in consumer economics from The Ohio State University in 1998, and in finance from the University of Missouri in 2011. He leads the O. Alfred Granum Center for Financial Security at the American College, and is a research fellow at the Retirement Income Institute. Michael is also a member of the Defined Contribution Institutional Investment Association Academic Advisory Council, and serves as a trustee on the Pension Reserve Trust of Puerto Rico. He is a frequent speaker at financial planning conferences and was named one of the “25 Most Influential People” in investment advising by Investment Advisor magazine in 2020 and 2021.

Show Notes

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