InhaltsangabeRetirement is one of the most important parts of the financial planning process. Yet only a small percentage of financial advisors describe themselves as competent when it comes to creating portfolios designed to meet retirement needs. Constructing a retirement portfolio is viewed as a difficult endeavor, and the demands facing financial advisors responsible for this task continue to grow. The pressures are particularly intense due to events such as the financial crisis and oncoming rush of retiring baby boomers. It's imperative that financial advisors be equipped and ready to create appropriate retirement portfolios. That's why Michael Zwecher--a leading expert on retirement income--has created Retirement Portfolios as well as the companion Retirement Portfolios Workbook. In Retirement Portfolios, Zwecher provides you with complete coverage of the most important issues in this field. Page by page, he shows you what it takes to protect your client's retirement and aspirations. Divided into four comprehensive parts, this reliable resource: * Examines how portfolios should be prepped in advance so that the transition from "working" portfolio to retirement portfolio is smooth and seamless * Outlines how to create a portfolio that will provide income, continue to generate growth, and protect assets from disaster * Details the differences in managing a retirement portfolio versus managing portfolios during asset-accumulation years * Discusses how to maximize the usefulness of retirement portfolios in your business--whether it's transaction-based or fee-based, institutional or retail The ability to create retirement portfolios and manage their risks are skills you must possess to be an effective financial advisor. Retirement Portfolios will help you develop these essential skills and gain a better understanding of the entire process.

MICHAEL J. ZWECHER is a leading expert on retirement income. He has created guidance, designed products, tools, and portfolio constructions that appeal to the financial advisor community and their clients. Zwecher co-chairs the curriculum committee of the Retirement Income Industry Association. He spent over ten years at Merrill Lynch, holding senior roles in risk management and wealth management, where he ran the Investment Management Strategic Solutions team in the Financial Products Group. Prior to Merrill, he was a consultant with Deloitte, an assistant professor at the Graduate School of Business Administration at Fordham University, and a visiting associate professor at the University of Wisconsin-Madison. Zwecher holds a PhD in finance from the University of Wisconsin-Madison.

Leseprobe

Foreword. Preface: Life in 2009 and Beyond. Acknowledgments. Part I: Framing the Problem. Chapter 1: Portfolio Focus and Stage of Life. A 'Balanced' Portfolio Approach May Not Last Through Retirement. Retirement Saving versus Retirement Income: An Illustration. Products versus Solutions. Summary. Chapter 2: The Top-Down View. A Short Primer on Economic Models of Retirement Income. An Overview of Economic Models of Retirement Income. Reconciling Retirement Income Portfolio Construction with Accumulation. The Dynamics of Risk Aversion. Separation between Flooring and Upside. Fully Funded vs. Under-Funded Flooring. Monetizing Mortality. Taking Market Risk. Risk is Risk, Is it Not? Risk, Uncertainty, and Risk Aversion. Summary. Chapter 3: The Importance of Lifestyle Flooring. Amount of Flooring: A Balance Sheet View. Retirement Requires Outcomes, Not Just Expectations. Consumption Needs. Yes/No Planning. The Window for Maintaining Lifestyle. The Bedrock Floor. The Aspirational Floor. The Finished Floor. Nominal versus Real Flooring. Types of Flooring. Choosing a Flooring Type. Summary. Chapter 4: Monetizing Mortality. Annuities and Longevity Insurance. Risk Pooling. Pure Longevity Insurance. Annuities. Complex Annuities. Credit Risk and Insurance. Summary. Chapter 5: Flooring with Capital Markets Products. Government Issued Securities. Creating a Floor of Strips. TIPS. Municipal Securities. Corporate Securities and Other Financial Products. Summary. Part II: Adapting Portfolios for Retirement Income. Chapter 6: Building Retirement Income Portfolios. Portfolio Sleeves for Retirement Income. Portfolio Intuition. Basic Portfolio Constructs. General Accumulation Plans for Retirement Income. Taxes and Retirement Income Portfolios. Summary. Chapter 7: Creating Allocations for Constructing Practical Portfolios by Age and Lifestyle Needs. Flooring Allocations. Longevity Allocations. Precautionary Allocations. Discretionary Equity Allocations: Assets with Risk. Summary of Allocations. Summary. Part III: Managing Portfolios for Retirement Income. Chapter 8: Rebalancing Retirement-Income Portfolios. Rebalancing the Discretionary-Wealth Subportfolio. Rebalancing the Functional Components. Raising the Floor. Summary. Chapter 9: Active Risk Management for Retirement-Income Portfolios. Static Example. The View from the Capital Markets Line. Risk Management and Expected Returns. Simple Rules: For Passive and Active Risk Management. An Inelegant but Simple Plan. High Water Mark Flooring. The Cushion. Risk Rules - Periodic Rebalancing. Risk Rules - More Active Rebalancing. CPPI and Volatility. Taxation and Active Management. Locking in Flooring, Long End vs Short End. A Quick Note on Usability, Scalability and Approaches other Than Liability Matching. Playing with Fire in a Retirement Income Portfolio. Summary. Part IV: Making it Happen. Chapter 10: The Transition Phase. What the Transition Is About. The Order of Transition. A Difficult Transition. When to Transition. Making the Transition Seamless. Creating a Business Model That Includes a Natural Transition. Sudden Transitions. Summary. Chapter 11: Putting Together the Proposal. Laying out Client's Assets to Show Current Status. Minimally Invasive Surgery: Reconfiguration Proposal. Lifestyle and Floo ...