Now more than ever, retirement planning for physicians is critical. Gone are the days when pensions and Social Security provided all of the income you needed for retirement. The new reality is that you are responsible for managing your own retirement, and that starts with making sure you’re strategic in your planning.
Rather than simply looking at income needs, we take an offensive and defensive approach to retirement planning; one that focuses on optimizing income and managing risk. Using our unique retirement planning tool, we can help create a retirement plan with a 90 percent probability of success of reaching your stated retirement goals.
Our Retirement Analytics is different than other Monte Carlo programs because it not only randomizes economic variables such as inflation, and investment returns or losses, but also randomizes events to capture the probability of living or dying during a given year, as well the probability of having a long term care event in any given year. These types of risks (e.g., living beyond life expectancy or having a long term care event) are modeled using actuarial tables that are accepted by the insurance industry. In any given ear, a retiree has a risk of dying, or a risk of having a long term care event.
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The planning tool analyzes Retirement Allocation Strategies with the Retirement Analytics Monte Carlo tool running 500 trials. A plan with a 90% confidence level means that in 90% of the trials (450), the plan met both goals of providing a specified amount of income over the lifetime of a hypothetical retiree and of meeting that retiree’s assumed legacy objective. A 75% confidence level option is also available.
The projections generated regarding the likelihood of various outcomes are hypothetical in nature, do not reflect actual investment or life results and are not guarantees of future results. Results may vary with each use and over time. Other investments not considered may have characteristics that are similar to or superior to those being analyzed.