Defined Contributions Compliance Consultant Loren D. Stark Company (LDSCO)
|
Pollard & Associates
|
Defined Contribution Account Manager Nova 401(k) Associates
|
TPA Retirement Plan Consultant EPIC RPS (TPA/DPS)
|
Retirement Planners and Administrators (RPA)
|
Fringe Benefit Group
|
Retirement Solutions Specialists
|
Senior Specialist 401k Recordkeeping T Bank N.A.
|
July Business Services
|
Regional Sales Director (West) July Business Services
|
Greenline Wealth Management
|
Great Lakes Pension Associates, Inc.
|
July Business Services
|
New York City District Council of Carpenters Benefit Funds
|
“BenefitsLink continues to be the most valuable resource we have at the firm.”
-- An attorney subscriber
Comparing the Economic and Conventional Approaches to Financial Planning
National Bureau of Economic Research [NBER] Aug. 20, 1999 "The conventional approach to retirement and life insurance planning, which is used throughout the financial planning industry, differs markedly from the economic approach. The conventional approach asks households to specify how much they want to spend before retirement, after retirement, and in the event of an untimely death of the head or spouse. It then determines the amounts of saving and life insurance needed to achieve these targets. The economic approach is based on the life-cycle model of saving. Its goal is to smooth households' living standards over their life cycles and to ensure comparable living standards for potential survivors. In the economic approach, spending targets are endogenous. They are derived by calculating the most the household can afford to consume in the present given that it wants to preserve that living standard in the future. Although spending targets under the conventional approach can be adjusted in an iterative process to approximate those derived under the economic approach, there are practical limits to doing so. This is particularly the case for households experiencing changing demographics or facing borrowing constraints. This paper illustrates the different saving and insurance recommendations provided by economic financial planning software and the practical application of traditional financial planning software." |
Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the linked news item's title). |
An important word about authorship: BenefitsLink® created this link to the news item, but we are not the news item's author (unless expressly shown above). |