Client Questions Income Discovery Can Help Answer

Income Discovery is both an analysis framework for comparing retirement income strategies and a software that implements that framework. The proposed framework introduces new risk-and-reward metrics that capture key concerns of retirees (read more). The framework and the software help answer basic questions retirees have when building a plan to generate income by providing the implications of each decision:

  • How much income can we safely get for life considering all sources of cash flow and retirement assets?

  • What are the chances that our money will last? If things go really badly, will we be okay? How long will we be able to get income? How much of an inheritance will we be able to leave?

  • In what sequence should we draw-down across taxable, IRA and Roth accounts? Should we do partial Roth conversions?

  • Should we defer our Social Security claim? If we defer it, can we create a stable cash flow replacement for the years the Social Security claim is deferred?

  • I am afraid of the volatility of stocks. Is there a way to structure retirement income with minimal investment in stocks?

  • Should we annuitize? What do we gain and lose by annuitizing? Is it better to buy a fixed annuity or a variable annuity with guaranteed benefits, or a mix of both?

  • Income annuity: Should we buy an annuity with immediate payouts or a payout that is deferred into the future?

  • Variable annuities with guarantees: Should we use a growth phase in the VA that lets the benefit base accumulate and gives us an opportunity to take benefits at higher payouts when we are older? Are the fees for the guaranteed riders worth the benefit received?

  • What is the difference between a Fixed Deferred Annuity and a Fixed Indexed Annuity, and which will help my specific situation the most?

  • Purchase Accounts: Which accounts should be used to purchase the annuities or individual bonds that make up the ladder considering all of the tax implications - capital gains tax on sales made to fund the purchase and taxes on benefit / cash flow received from the products after purchase?

Income Discovery software lets you demonstrate various strategies side-by-side, showing the client the net impact of each strategy or product on their income plan, in turn helping them trade-off income reward against safety and bequest goals.


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