Market Turbulence: The Value of RIIA®’s Household Balance Sheet in a Down Market

This volatile market brings the value of the RMA®’s approach to retirement planning into sharp focus because it makes its benefits more apparent to those who feel the pain of their prior investment decisions. In particular, it highlights the reason why advisors should start their retirement planning work with the client’s Household Balance Sheet. The Household Balance Sheet provides a dollar measure of each client’s risk capacity.

“In a volatile market a seemingly balanced asset allocation model can lead to financial stress unless retirees have sufficient income to cover living expenses when they need it,” said Francois Gadenne, Co-Founder, Chairman & Executive Director of RIIA. “RIIA provides the education and the tools needed to build a balanced ”retirement allocations” model.

RIIA’s model includes traditional asset allocations as one of four risk-management techniques allocations that are known collectively as RIIA’s Retirement Allocations. Traditional asset allocation can be used in the Upside Portfolio. Retirement allocations also include a Floor Portfolio, a Longevity Portfolio and a Reserves Portfolio.

The potentially unbalanced nature – for retirement - of the traditional 60/30/10 asset allocation model is readily visible when it is translated into “retirement allocations” because it thus becomes 90/0/0/10.

For information about RIIA’s retirement planning concepts and tools click here. Click the links for more information about the RMA and RMA online course.

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