In estate planning school you may learn about a fund certificate, income annuities, and fixed rate annuity retirement. It is important to understand all of the research that goes into fixed rate annuity retirement. While handling retirement, you will need to learn about Roth IRAs. For example, during lifetime, the Roth IRA client is not subject to RMDs, meaning the entire amount can be left to someone else. A beneficiary who inherits a Roth IRA may be subject to RMDs, but withdraw the original conversion tax-free. Earnings are also tax-free, provided the Roth IRA meets the five-year holding requirement.

Important research has concluded that income annuities can provide secure income for one’s entire lifetime for 25-40% less money than it would otherwise cost an individual, thanks to an insurer’s ability to spread risk across large numbers of people. Economists have come to agreement that annuitization of a substantial portion of retirement wealth is the best way to go. The value of annuities in retirement seems to be a rare area of consensus among economists. As a student in estate planning school, you should be able to understand this research and make an important analysis and conclusions based on the information.

Many economists believe that only lifetime income annuities can protect individuals in an efficient way from the risk of outliving their assets and that this simply cannot be duplicated by mutual funds, certificates of deposit, or any number of homegrown solutions. They believe that income annuities clearly should be more widely used, given that highly rated insurance companies are reliable and inexpensive sources of guaranteed income streams in retirement. If you attend an estate planning school you will not only know how to manage an estate, but you will be prepared to also manage retirement and income annuities. It’s important to understand what a fund certificate is as well as understand other certificates in order to be successful as a manager and planner for retirement.

For decades “replacement rates” have been the primary rule of thumb measure used to estimate an adequate level of income during retirement. Replacement rate is annual retirement income divided by annual income just before retirement. For example, someone who retires from a job with $100,000 in salary and has $75,000 in retirement income has a replacement rate of 75% (which many financial planners consider adequate).

A weakness of replacement rate models is that some important retirement risks are not taken into account, including investment risk, longevity and the risk of potentially catastrophic health care costs. Taking these risks and inflation into account and using a Monte Carlo model, the study demonstrates that for most retiree groups, converting some retirement assets to an income annuity at retirement can lower the replacement rate needed to achieve a 90% probability of income adequacy.

Overall, it’s important to realize that estate planning school can help teach you about fund certificate and how to develop retirement income plans. In order to be successful in retirement planning and estate planning, you need to be armed with the necessary skills to be effective while using all of the models. A successful career begins with estate planning school.

Author Bio: Cory Bowman is Director of Ops at the Institute of Business Finance. IBF has helped thousands of members of the financial services industry attain designations. For more information about estate planning school, fund certificate visit http://www.icfs.com

Category: Finances
Keywords: estate planning school, fund certificate