Experts Prove Most Financial Advisors Aren’t Giving the Best Retirement Advice

27 Apr

Retirement Advice

William Reichenstein and William Meyer, founders of Retiree Income, share their research on where financial advisors go wrong with their retirement advice.

LEAWOOD, Kan., April 27, 2017 /PRNewswire/ — In their article “How to Beat the Conventional Wisdom: Part 1” published in Financial Advisor Magazine, retirement planning experts William Reichenstein, PhD, Principal, Retiree Income, and William Meyer, CEO, Retiree Income, discuss their latest research which debunks conventional wisdom around tax-efficient retirement withdrawals and proves a better way to create income from retirement savings.

“Through our research, we found there are better strategies for creating retirement income than the ones the industry is currently using,” said Meyer. “These strategies provide greater tax efficiency, creating six or more years of income. As an industry, we can do better for clients.”

Conventional wisdom suggests that an investor should withdraw retirement funds from one account at a time moving to the next one after the previous is exhausted, starting with tax-deferred accounts and moving to tax-exempt accounts. In their research published in The Financial Analysts Journal, Meyer and Reichenstein demonstrate that this conventional wisdom is not the most tax-efficient.

Their research demonstrates the most tax-efficient strategies take into account progressive tax rates, consider drawing from multiple accounts concurrently and use Roth conversions – all while taking advantage of years when the investor has lower marginal tax rates. The research shows that using these unconventional strategies can add more than six years of portfolio longevity compared with a conventional strategy.

Access the entire article here:–part-1-32019.html.

About Retiree Income
Retiree Income was founded on the belief that there is a better way to serve retirees or people getting ready to retire—one that is smarter and more personalized. The company produces retirement income planning software for both financial professionals and consumers.

About William Meyer
Throughout his career, William Meyer has looked for new ways to deliver higher quality advice to people in retirement. He has a unique combination of experiences in leading the design and launch of innovative client centric services and products, as well as leveraging technology in service offerings.

Early in Bill’s career, he learned financial planning techniques for the affluent, and has strived to apply those insights to all households regardless of wealth. He has a track record of successfully developing products and services in executive leadership roles at H&R Block, Advisor Software and Charles Schwab.

About William Reichenstein, PhD, CFA
Dr. William Reichenstein, CFA, holds the Pat and Thomas R. Powers Chair in Investment Management at Baylor University. His recent work concentrates on the interaction between investments and taxes. He is the author of In the Presence of Taxes: Applications of After-Tax Asset Valuations (FPA Press, 2008), and coauthored with William Jennings Integrating Investments & the Tax Code (John Wiley & Sons (2003).

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