Retirement industry thought leaders Dr. Michael Finke and Tamiko Toland have launched a new product aimed at assessing retirement income risk.
IncomePath considers spending flexibility, investment volatility, and other risk factors for participants to understand all the potential paths their retirement could potentially take, and how to successfully withdraw income at a timely rate. Utilizing such a planning software could help clients understand the right combination of investment risk, portfolio withdrawals, and annuity income they’ll need for the future, rather than focusing on “failure” to generate enough income, says Finke in a release.
“What people really need is a better way to understand the choices they can make to build an income that fits the way they want to live. That’s the goal of IncomePath,” Finke, who is the co-founder and chief strategist of IncomePath, states.
Whereas industry expert have previously pointed to the popular 4% rule to measure retirement income risk, Finke and Toland say offering flexible approaches, like guardrails that allow spending adjustments during retirement, could better fit participants’ lifestyles.
According to a new whitepaper by Toland and Finke that introduces the product, the IncomePath methodology is an “adaptive withdrawal strategy that recalculates the withdrawal every year based on the account value and the expected lifespan of the individual. In addition, it allows a withdrawal adjustment that permits spending flexibility up to a stated percentage of the previous year’s withdrawal. “
“IncomePath provides an intuitive way for consumers to gain a deeper understanding of how investment risk and financial products work, and the key tradeoffs involved,” said Toland, who is also CEO of IncomePath. “We want to help consumers to make a personal decision about how much lifetime income they want— if any—through a simple planning experience.”
IncomePath is expected to be available for individual financial professionals in early 2024.
SEE ALSO:
- Catching Up with ‘Annuity Yoda’ Tamiko Toland
- Corporate Roundup: Toland Opens Annuity Practice; OneDigital Acquires $900M Firm
- The 2024 Game Plan for In-Plan Annuities
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
