Advising Clients Through the Controllable Factors and Uncontrollable Risks of a Retirement Spending Plan
A critical element of a successful retirement spending plan is creating consistent and sustainable income. When creating a plan there are four main variables you can control: the client’s retirement age, pre-retirement contributions, retirement income amount and the asset allocation of the portfolio. After identifying a spending plan based on what clients can control, the plan is still exposed to four major uncontrollable risks: longevity, market returns, inflation and portfolio shocks.
This session uses Monte Carlo analysis to help you better understand the impact of changing the factors clients can control as well as how sensitive the portfolio may be to uncontrollable risks. Additionally, we’ll evaluate the efficacy of adding a registered indexed linked annuity (RILA) with guaranteed lifetime income through an income benefit rider that is available for an additional cost to a traditional equity and bond portfolio to help clients better handle the uncontrollable risks they will face in retirement.
Mark Paulson leads the development of new and existing global FIA, RILA and FIUL business from a hedging perspective. He leads the interaction with global clients (new and existing), translates client business goals into projects for the various Allianz Investment Management (AIM) hedging functions (strategy, systems, portfolio management and trading) and oversees AIM hedging's involvement in global business development from end to end.
He received his bachelor’s degrees in mathematics and actuarial science from the University of St. Thomas and his master’s degree in financial mathematics from the University of Minnesota. Prior to his current position, Paulson was the quantitative analyst, assistant vice president of hedge trading at Allianz. Previously Paulson worked at Watson Wyatt as an actuarial consultant in both the group health care and pension practices, and Walleye Trading as a trader and risk manager.