Retirement Portfolios: Theory, Construction, and Management

"Mike Zwecher′s new book expands on an important approach to building retirement portfolios that is being integrated into RIIA′s Retirement Management Analyst (RMA) curriculum. Retirement Portfolios is an important book that you can use here and now. It is required reading and an important piece of the RMA curriculum." —François Gadenne, Chairman and Executive Director, Retirement Income Industry Association (RIIA)
"The approach to successfully managing assets for retirees and near retirees is a much different endeavor than the traditional approach used for wealth accumulation purposes. Mike Zwecher lays out a thoughtful and practical process that all baby boomers and their financial advisers should read." —John Carl, President, Retirement Learning Center
"Retirement planning in the post–2008 world requires a new thinking. It requires new ways of approaching a client′s cash flow and balance sheet, new ways of assessing a client′s retirement risks, new ways of managing retirement risks, and new ways of building retirement portfolios that produce income and growth, that create a floor and upside. Michael Zwecher′s book represents all that and then some. This book not only builds on the existing body of knowledge but expands it in ways that make it a must–read for anyone who holds themselves out to be a credible retirement planner." —Robert Powell, Editor, Retirement Weekly, a service of MarketWatch.com
"Mike offers the financial advisor community and their clients a thoughtful playbook to help them navigate through the retirement process with confidence. Retirement planning is not only about laddered bonds and annuities, but requires a structural foundation similar to Modern Portfolio Theory to support retirement planning and Retirement Portfolios puts us on the right path." —Bruce E. Wolfe, CFA, Chairman, Allianz Retirement Market Committee
Spis treści:
Preface.
Acknowledgments.
PART ONE Framing the Problem.
CHAPTER 1 Portfolio Focus and Stage of Life.
A "Balanced" Portfolio Approach May Not Last Through Retirement.
Retirement Saving versus Retirement Income: An Illustration.
Products versus Solutions.
Summary.
CHAPTER 2 The Top–Down View.
A Short Primer on Economic Models of Retirement Income.
An Overview of Economic Models of Retirement Income.
Reconciling Retirement Income Portfolio Construction with Accumulation.
The Dynamics of Risk Aversion.
Separation between Flooring and Upside.
Fully Funded versus Underfunded Flooring.
Monetizing Mortality.
Taking Market Risk.
Risk Is Risk, Is It Not?
Risk, Uncertainty, and Risk Aversion.
Summary.
CHAPTER 3 The Importance of Lifestyle Flooring.
Amount of Flooring: A Balance Sheet View.
Retirement Requires Outcomes, Not Just Expectations.
Consumption Needs.
Yes/No Planning.
The Window for Maintaining Lifestyle.
The Bedrock Floor.
The Aspirational Floor.
The Finished Floor.
Nominal versus Real Flooring.
Types of Flooring.
Choosing a Flooring Type.
Summary.
CHAPTER 4 Monetizing Mortality.
Annuities and Longevity Insurance.
Risk Pooling.
Pure Longevity Insurance.
Annuities.
Complex Annuities.
Credit Risk and Insurance.
Summary.
CHAPTER 5 Flooring with Capital Markets Products.
Government–Issued Securities.
Creating a Floor of Strips.
TIPS.
Municipal Securities.
Corporate Securities and Other Financial Products.
Summary.
PART TWO Adapting Portfolios for Retirement Income.
CHAPTER 6 Building Retirement Income Portfolios.
Portfolio Sleeves for Retirement Income.
Portfolio Intuition.
Basic Portfolio Constructs.
General Accumulation Plans for Retirement Income.
Taxes and Retirement Income Portfoli os.
Summary.
CHAPTER 7 Creating Allocations for Constructing Practical Portfolios by Age and Lifestyle Needs.
Flooring Allocations.
Longevity Allocations.
Precautionary Allocations.
Discretionary Equity Allocations: Assets with Risk.
Summary of Allocations.
Summary.
PART THREE Managing Portfolios for Retirement Income.
CHAPTER 8 Rebalancing Retirement Income Portfolios.
Rebalancing the Discretionary Wealth Subportfolio.
Rebalancing the Functional Components.
Raising the Floor.
Summary.
CHAPTER 9 Active Risk Management for Retirement Income Portfolios.
Static Example.
The View from the Capital Markets Line.
Risk Management and Expected Returns.
Simple Rules: For Passive and Active Risk Management.
An Inelegant but Simple Plan.
High–Water Mark Flooring.
The Cushion.
Risk Rules: Periodic Rebalancing.
Risk Rules: More Active Rebalancing.
CPPI and Volatility.
Taxation and Active Management.
Locking in Flooring: Long End versus Short End.
A Quick Note on Usability, Scalability, and Approaches Other Than Liability Matching.
Playing with Fire in a Retirement Income Portfolio.
Summary.
PART FOUR Making It Happen.
CHAPTER 10 The Transition Phase.
What the Transition Is About.
The Order of Transition.
A Difficult Transition.
When to Transition.
Making the Transition Seamless.
Creating a Business Model that Includes a Natural Transition.
Sudden Transitions.
Summary.
CHAPTER 11 Putting Together the Proposal.
Laying Out Client′s Assets to Show Current Status.
Minimally Invasive Surgery: Reconfiguration Proposal.
Lifestyle and Flooring Types.
Accumulation Plan Types.
Allocations.
Passive Versus Active Risk Management.
Summary.
CHAPTER 12 Market Segmentation.
Segmentation for Traditional Portfolios.
Segmentation for Retirement Income Portfolios.
Summary.
CHAPTER 13 Products and Example Portfolios.
Overview of Products Offered.
Managing Expectations around Outcomes.
Example Portfolios.
Summary.
CHAPTER 14 Preparing Your Client for a Retirement Income Portfolio.
Know Your Resources.
Lifestyle and Life Cycle.
Risks to Your Retirement Lifestyle.
Lifestyle and Flooring Types.
What the Adviser Needs from the Client.
Summary.
CHAPTER 15 Salvage Operations, Mistakes, and Fallacies.
Mistakes and Fallacies.
How to Dig Out of a Hole.
Summary.
Appendix A: History of Theoretical Developments in Life–Cycle Planning.
The Model.
Rising Lifestyles and Habit Formation.
Empirical Studies of Life–Cycle Behavior.
Appendix B: How Professionals Can Maximize the Usefulness of this Book.
Transaction–Oriented Salespeople.
Asset Gatherers.
Insurance Planners.
Financial Planners.
Portfolio Managers.
Notes.
Glossary.
References.
Index.

Nota biograficzna:
MICHAEL J. ZWECHER is a leading expert on retirement income. He has created guidance, designed products, tools, and portfolio constructions that appeal to the financial advisor community and their clients. Zwecher co–chairs the curriculum committee of the Retirement Income Industry Association. He spent over ten years at Merrill Lynch, holding senior roles in risk management and wealth management, where he ran the Investment Management Strategic Solutions team in the Financial Products Group. Prior to Merrill, he was a consultant with Deloitte, an assistant professor at the Graduate School of Business Administration at Fordham University, and a visiting associate professor at the University of Wisconsin–Madison. Zwecher holds a PhD in finance from the University of Wisconsin–Madison.

Okładka tylna:
"Mike Zwecher′s new book expands on an import ant approach to building retirement portfolios that is being integrated into RIIA′s Retirement Management Analyst (RMA) curriculum. Retirement Portfolios is an important book that you can use here and now. It is required reading and an important piece of the RMA curriculum." —François Gadenne, Chairman and Executive Director, Retirement Income Industry Association (RIIA)
"The approach to successfully managing assets for retirees and near retirees is a much different endeavor than the traditional approach used for wealth accumulation purposes. Mike Zwecher lays out a thoughtful and practical process that all baby boomers and their financial advisers should read." —John Carl, President, Retirement Learning Center
"Retirement planning in the post–2008 world requires a new thinking. It requires new ways of approaching a client′s cash flow and balance sheet, new ways of assessing a client′s retirement risks, new ways of managing retirement risks, and new ways of building retirement portfolios that produce income and growth, that create a floor and upside. Michael Zwecher′s book represents all that and then some. This book not only builds on the existing body of knowledge but expands it in ways that make it a must–read for anyone who holds themselves out to be a credible retirement planner." —Robert Powell, Editor, Retirement Weekly, a service of MarketWatch.com
"Mike offers the financial advisor community and their clients a thoughtful playbook to help them navigate through the retirement process with confidence. Retirement planning is not only about laddered bonds and annuities, but requires a structural foundation similar to Modern Portfolio Theory to support retirement planning and Retirement Portfolios puts us on the right path." —Bruce E. Wolfe, CFA, Chairman, Allianz Retirement Market Committee