How-To Videos
Tue, Jul 16, 2019
Goal Seek for Decumulation
How much money can I take from my portfolio without running out? How long will my portfolio last in retirement? Given my asset allocation, how much would I need to sustain a given level of withdrawal in retirement. Do you frequently get these questions from your clients? We bet.
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Case Studies
Tue, Jul 9, 2019
Using Timeline with Voyant
‘How does Timeline work with Voyant?’
This is a question we get asked time and time again. We know many planners use both software. We totally get why. Voyant is a powerful cashflow planning software used by financial planners. Timeline illustrates and creates a sustainable withdrawal strategy for clients.
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Article
Mon, Jun 24, 2019
Dynamic Longevity Assumptions in Retirement
American writer Mark Twain was reported to have accurately predicted his own death. He apparently based his prediction on the astronomical phenomenon that marked his birth, the appearance of Halley's Comet. A year before his death, Twain said: 'I came in with Halley's Comet in 1835. It is coming again next year, and I expect to go out with it. It will be the greatest disappointment of my life if I don't go out with Halley's Comet. The Almighty has said, no doubt: "Now here are these two unaccountable freaks; they came in together, they must go out together.'
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Revisiting Capacity for Loss In Retirement
There's a lot of confusion around assessing capacity for loss, particularly for clients drawing down their portfolio. Much of it stems from the fact that the Regulator doesn't really seem to know how it should be assessed.
There appears to be two camps in this debacle. On one side, you have an ex-regulator, paraplanners and compliance consultants who seem to think that capacity for loss is the be-all and end-all. We’ll call them the ‘compliance camp’. On the other hand, you have financial planners at the coal face.
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How AUM Fees Affect Sustainable Withdrawal
One of the great misconceptions about the Sustainable Withdrawal Rate (SWR) framework is how an adviser (and fund) fees affect withdrawals from a retirement portfolio.
This analysis shows that 1%pa translates into around 6%-12% (UK) and 9%-13% (US) of the client's overall income and capital, depending on the scenario. A total fee of 2%pa wipes out around 13%-26% (UK) and 19%-28% (US) of the overall fund, depending on the scenario.
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Bengen’s 4% Rule Around The World
How much can I draw from my retirement savings without running out of money?
This is the 64-million-dollar question Bill Bengen attempted to answer in his seminal 1994 paper published in the Journal of Financial Planning.
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Retirement Income Plan For The Miggins II
The Miggins are back. See here for details but the headline is John and Jo Miggins are 65, recently retired with £300k in their retirement pot and a house with no mortgage.
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Retirement Income Plan for The Miggins
John and Jo Miggins have worked hard all their lives. They saved as much as they could and now they’re ready to retire.
They've paid off their mortgage and their home is worth £260k. Between them, they have £300k in their pension pots. And that’s it!
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Article
Mon, Mar 25, 2019
Lessons from 119 years of capital market data
The latest Credit Suisse Global Investment Yearbook (excerpt here) compiled by Professor Elroy Dimson and his colleagues Paul Marsh and Mike Stanton, is a treasure trove of information. It covers asset class return and inflation in 26 different markets over the 119 years between 1900 and 2018.
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