Tuesday, June 12, 2012

Retirement Income Challenge

I made the following chart today. I'm trying to make something that can work as a nice illustration to introduce the main ideas behind building a retirement income strategy. I hope that when you click on it, you will be able to read it better. Comments, questions, and suggestions are always appreciated.


7 comments:

  1. I would include immediate variable annuities such as the Vanguard one. Combined with a floor it allows harvesting mortality credits with equity returns. Good way to up income if bequest is not important.

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    1. Thanks John, good call. They should be included as a stand alone too, and not just with riders.

      Also, note to self: I should add indexed annuities as a category

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  2. I am curious why you chose concentric circles.

    It is a visually interesting way to present three (very good) lists related to a process objective. But the circles were too subtle for me if there is particular relevance to the order of the rings or the shape.

    Given the objective "to balance", did you consider a scale?

    Or maybe a process diagram like a water cycle, with three "areas" of income, risk and goals connected by a loop of flows?

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    1. That's a good question. I looking through the "clip art" options, that seemed to be the best possibility, though I'm not fully satisfied with it. But most of the other options would make it hard to fit so much text.

      Also, I thought the circle structure made sense, provided that the reader start from the center of the circle. First you have your goals. But there are risks wrapped around those goals. The income tools then wrap around those risks so that goals can be met. That's the idea, anyway.

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  3. Nice, comprehensive elaboration of the services diagram in https://riia.memberclicks.net/assets/research/5-advisorbestpracticesreport-jan2011.pdf

    Puts the process at the core. What happens when you put the household at the core--as in Hogan's diagram at http://www.fpanet.org/journal/FinancialPlanningALookfromtheOutsideIn/

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    1. Thanks for sharing. Those are both great resources.

      I like Paula Hogan's diagram.

      The problem here is that there could potential be 1000 different ways to like a goal to a risk to a tool for dealing with that risk.

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  4. Making plans about retirement is an essential step. In the past, many retirees said goodbye to their jobs without realizing the dilemma they will be confronted only a few after retirement. Indeed, planning ahead can save you from trouble so you can enjoy your retirement years more productively. Here are 6 things that a future retiree must seriously consider before making a decision.

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