Most financial advisors place a great deal of importance on retirement income planning, but these same advisors don't agree on how best to track whether a client's investments are achieving the desired result: sustainable retirement income.
That's according to Russell Investments' Financial Professional Outlook, a quarterly survey of U.S. financial advisors that found 34 percent of respondents said they measure clients' retirement plans based on preservation of principal after distributions.
The next-largest response (20 percent) came from those who said they preferred to track the portfolio's maintenance of a projected rate of return. Only 15 percent of advisors said they assess the net present value of clients' projected assets against projected liabilities to gauge whether they are on track, which is the method Russell recommends advisors use. Russell, a global asset manager, calls this concept the "funded ratio."
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
