Creating a retirement income strategy is a wasted effort unless the future retiree first addresses the financial risks associated with retirement. This column identifies and then offers planning opportunities for the four key financial risks associated with retirement: longevity, market, inflation, and spending. Once these risks are addressed through insurance, hedging, or funding, a useable retirement income strategy can then be created.
Steve Parrish, JD, RICP, CLU, ChFC, RHU, AEP, is the codirector for the New York Life Center for Retirement Income Planning at The American College of Financial Services. He is also an adjunct professor at both The American College and Drake University Law School.