DRMM
DETERMINING HOW MUCH MONEY YOU NEED TO RETIRE, AND TAX IDEAS AND MONEY MANAGEMENT IN RETIREMENT

This course gives CPAs the knowledge to help their clients implement tax-effective investment and portfolio strategies for successful wealth accumulation and real after-tax retirement income maintenance.

Major Topics:

  • Asset allocation, portfolio management, portfolio rebalancing,and investment selection concepts, before and after retirement, tax-saving investment transactions, and the optimal asset mix between retirement plans and taxable savings
  • Historical guidelines for nominal and real after-tax returns
  • NEW expanded section on understanding expenditure patterns in retirement and the level and risk associated with out-of-pocket medical expenses in retirement
  • Worksheets/formulas for determining how much money one needs to assure a financially secure retirement
  • Distribution/asset liquidation planning including the pros and cons of various annuity options, guidelines/strategies using the minimum required distribution rules for qualified plans and IRAs, beneficiary elections, and the use of trusts
  • Sustainable portfolio withdrawal rates during retirement for differing stock/bond/cash asset allocations, inflation rates, and tax rates both from tax deferred accounts and taxable accounts
  • Analysis of the regular IRA to Roth IRA conversion election
  • Variable annuities vs. mutual funds; Roth IRAs vs. regular IRAs; and the use of life insurance in a pension maximization strategy
  • Analyzing the impact of recent tax law, regulations, and rulings

Learning Objectives:

  • Identify the success factors in building a retirement nest egg
  • Explain the relationship between risk and return and the investment horizon
  • Describe the tax effect of inflation, its interaction with the income tax, and the effects of taxation on investment performance
  • Explain survival possibilities and how first-to-die and last-to-die survival probabilities are used in retirement planning for married couples
  • Discuss the pros and cons of annuities as accumulation and payout vehicles for retirement
  • Describe the complex tax, legal, and financial elements of life insurance and summarize the wide range of uses for life insurance in retirement planning
  • Explain the various ways clients can convert the equity in a home to retirement income

Designed For: CPAs who wish to serve the needs of the growing segment of the public for whom effective retirement planning is critical as they reach their peak earning years and/or are approaching retirement
Level of Knowledge: Intermediate
Prerequisite: Basic knowledge in retirement planning
Advanced Preparation: None
Credits: 8