Our retirement wellness these days is vulnerable to more risks than ever before. With fewer retirees enjoying the benefit of pensions and guaranteed income, personal savings and investments are susceptible to many dangers that could cause millions to run out of money in their elderly years. It is called longevity risk and it is estimated that as many as one-third of all Baby Boomers will be dependent upon family, charity, or the government at some point in retirement. That is why it is important to understand the objective and process of stress-testing, which is a sophisticated financial modeling simulation technique used by professional asset managers and financial planners to determine the vulnerability of retirement plans and investment portfolios. 

Learning Objectives: 

• Define what stress-testing is and why it is an important part of retirement wellbeing in today’s world 


• Identify areas of vulnerability in retirement portfolios 


• Give examples of how modeling can help build and manage portfolios to weather potential economic calamities 


• Recall why stress-test retirement income withdrawals against inflation and other risks that could cause accelerated asset depletion is a critical part of planning


• List the benefits of comprehensive financial planning combined with diligent stress-testing and active management that can save you and your clients thousands of dollars in potential losses, unnecessary fees, and expenses, and provide the peace of mind desired in retirement