This course gives CPAs knowledge to help their clients implement tax-effective investment and portfolio strategies for successfully wealth accumulation and real after-tax retirement income maintenance.
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 probabilities as well as how first-to-die and last-to-die survival probabilities are used in retirement planning for married couples
- Discuss the pros and cons of using annuities as investment and payout vehicles for retirement
- Describe the complex tax, legal, and financial elements of life insurance and summarize the uses for it in retirement planning
- Explain how clients can convert home equity to retirement income
- Summarize key points of recent research on the sustainability of retirement income and maintenance of desired retirement liefstyles
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
- Analyses of the most current/important research on retirement planning and sustaining retirement income levels and lifestyles
