Why Seek a Retirement Plan Here?

The Retirement Income Stabilizer (RIS) was designed to provide retirees with tools and options that are critically important to a successful retirement but are not now readily available in the marketplace -- or are available only as stand-alones, not as part of an integrated package. These are some of the advantages of developing a retirement plan using RIS.

  • The retiree is protected against the risk of running out of money at an advanced age by the only instrument designed specifically for that purpose: the annuity.
  • The retiree obtaining an annuity through RIS has access to price quotes from all highly-rated insurers offering annuities, and can select the insurer offering the largest annuity amount.
  • Using RIS, the retiree draws spendable funds first from her financial assets based on an assumed rate of return, then from the annuity, with the two sources seamlessly integrated.
  • Retirees managing assets under RIS receive guidance in the form of distributions of rates of return over relevant historical periods on portfolios similar to their own.
  • The retiree can modify the future pattern of draw amounts by adding an inflation adjustment of 1%, 2% or 3% each year, and by stipulating a U-shaped pattern or an inverse U-shaped pattern of draw amounts.
  • The amount the retiree leaves to her estate using RIS is determined mainly by the amount of a Set-Aside created by the retiree for that purpose, rather than by chance.
  • To prepare for future contingencies, RIS allows retirees to model a “worst case” in which the realized rate of return on assets falls below the rate assumed by the retiree in calculating the amount drawn monthly from financial assets. In response, the retiree can reduce the draw amount, draw the amount needed to offset the deficiency from a credit line on a HECM reverse mortgage, or use the set-aside for that purpose.
  • HECM reverse mortgages are part of the RIS package, and are used either to enhance the monthly draw amounts using term or tenure payment options, or as a standby facility to offset a special need using the credit line option. The retirees accessing a HECM through RIS have access to the best deal offered by 9 lenders who provide their pricing to RIS.
  • A major feature of RIS is that retirees have many options. These include the annuity deferment period, the rate of return used to determine the initial draw amount, the desired future pattern of draw amounts, whether a HECM reverse mortgage is included in the plan or not, and if it is, which option is to be used. Because RIS is so option-rich, graphical time series displays are used to compare alternative scenarios. For the same reason, we envisage most retirees working with investment advisors.

In or near retirement? The Professor’s Retirement Funds Integrator (RFI) might enhance your life during retirement.

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