DRMM
DETERMINING HOW MUCH MONEY YOU NEED TO RETIRE, AND
TAX IDEAS AND MONEY MANAGEMENT IN RETIREMENT

The purpose of this course is to give CPAs the tools and knowledge required to help their clients implement tax-effective investment and portfolio strategies for successful wealth accumulation and real after-tax retirement income maintenance. The course discusses a host of specific investment tax planning and money management issues and topics, both before and after retirement, within the broader context of the fundamentals of asset allocation and portfolio management, coordinating retirement plans and taxable saving, advanced tax-adjusted time value principles, and asset risk/return and income-tax relationships.

Major topics include:

  • Asset allocation, portfolio management, and investment selection concepts including portfolio rebalancing, before and after retirement, tax-saving investment transactions, and the optimal asset mix between retirement plans and taxable savings
  • Historical guidelines and benchmarks for nominal and real after-tax returns (accounting for both the income and capital gains components of returns)
  • Worksheets and formulas for determining how much money one needs in order to assure a financially secure retirement and the after-tax accumulations achievable for various asset categories
  • Distribution and asset liquidation planning including the pros and cons of various annuity options, guidelines and 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
  • When a variable annuity is a better after-tax investment than a mutual fund; when it is better to contribute after-tax dollars to a Roth IRA rather than before-tax dollars to a regular deductible IRA; and when it is better to elect a single life annuity from a pension and buy insurance to protect the spouse rather than to take the qualified plan survivor benefit (the Pension Max issue)
  • Analyzing the impact of recent tax law

Designed for: CPAs who wish to serve the needs of the growing segment of the public for whom effective retirement planning is critical as they reach their peak earning years and/or are approaching retirement.

Level of knowledge: Intermediate