Deck 30: Retirement Asset Wealth Management

Question 1

Describe the types of models used in retirement planning.

Answer 1

Retirement planning is the process to determine the income goals of retirement, and its actions, and decisions which are important to achieve the targets. The planning contains to identify the income sources, its estimating expenses, and manage the risks, and assets.
The various types of models used in retirement planning are as follows:
DETERMINISTIC MODELS
These models use a specific set of fixed assumptions, the assumptions can determined with the help of the model developer, and the model user. Such models don't have the best methods to measure the risk. The model get illustrate in two ways, the model get run by many times which represent the different types of scenarios, second the assumptions get change which shows the sensitivity among various assumptions.
STOCHASTIC MODELS
These models don't use particular set of fixed assumptions, but the assumptions get change. Such models helps to employ the statistical methods which can introduce the variability in the model parameters. The stochastic models which are pure don't get exist, because these models should get employ with some particular fixed assumptions.
MIXED MODELS
This model used a combination of a variable, and fixed assumptions. It allows a particular set of assumptions to get change, which attempts to gauge the probabilities of failure, and success. The example of mixed models are Monte Carlo simulation, this method is complex in nature, and difficult to reproduce the things.

Question 2

What is meant by implicit after-tax return

Answer 2

Implicit taxes on investments means the difference in before tax return on the total taxable investment value, and the before tax return on a not-fully taxed investment values. The investors have to pay the implicit taxes, and explicit taxes.
The implicit after-tax rates of return helps to examine the return on retirement savings, and it is the compound annual return, and it should be earned by an individual person in order to earn it on a specific value of pretax earnings in order to achieve a particular after-tax balance at the withdrawal time.
The holding time period for the asset get held in the taxable account., the short term, and the long-term investment type return get earned in the shape of dividends, capital gain, and payment of interest.

Question 3

Why is it difficult to determine the optimal positioning of assets within retirement savings plans

Answer 3

Retirement planning is the process to determine the income goals of retirement, and its actions, and decisions which are important to achieve the targets. The planning contains to identify the income sources, its estimating expenses, and manage the risks, and assets.
The individual have to make the empowerment during the accumulation process, the assets get built up in the retirement savings plan, and in the distribution phase the assets may get drawn in order to generate the retirement income. Therefore, the individuals have the ability in order to select the investments, and can determine that whether the contributions can takes place on a pre-of after tax basis.
The individuals can control the allocation of assets, and the status of tax of its accumulating retirement resources. The individual can determine that what king of retirement savings vehicle can be used in order to accumulate the assets. Large number of individuals get covered in the retirement plan which can be saved for the retirement.

Question 4

What is the typical approach used by professional wealth managers in managing investments for clients

Question 5

What is the functional approach to employee benefits, and how does it apply to individuals planning for retirement

Question 6

What is income in respect of a decedent (IRD)

Question 7

Discuss methods for fostering a team approach among various professionals and ways to align financial products and strategies to best serve an individual seeking to use a wealth management approach in retirement planning.

Question 8

What is wealth management

Question 9

Discuss how employers can encourage employees to use a wealth management approach in planning for retirement.

Question 10

Why should retirement planning be conducted in a wealth management context

Question 11

What are some of the advantages an individual can secure by conducting retirement planning in a wealth management context

Question 12

Why do many individuals view the management of their retirement assets using a compartmentalized perspective rather than the more holistic wealth management approach

Question 13

What environmental changes have occurred to make retirement planning in a wealth management context a viable approach

Question 14

Summarize the managerial tasks involved in wealth management.

Question 15

What impediments hamper the use of wealth management practices at the tactical level

Question 16

Describe retirement planning wealth management decision elements.