The Retirement Management Account (RMA), a relatively new discipline, was introduced to the retirement planning industry in 2004. It was developed by Cornell University researchers, David A. Norton and Robert J. Gomes, as part of their work at the Center for Retirement Research. The Retirement Management Account is designed to help financial planners develop more effective retirement income strategies, and to assist client trustees in designing and administering a retirement plan that meets the needs and goals of the client. Its main function is to create a smoother process for retirement funding and investment through improved communication between the client and financial planners and fund administrators. The RMA also helps client employers to understand the full scope of retirement benefits and helps them to provide workers with appropriate information about pensions and retirement benefit annuities. Finally, the RMA helps consumers effectively manage and monitor endowments, providing accurate, well-designed, and client-focused advice.
The Retirement Management Account (RMA) curriculum consists of core courses in financial economics, retirement plans, risk, and retirement compensation. The program teaches important lessons in investment decision-making, asset allocation, retirement planning, and estate planning. The program also includes core courses in retirement management law, estate planning, risk management, retirement income protection, taxes, and retirement planning essentials. Many advisors who specialize in retirement services offer a comprehensive “earned trust” approach to retirement assets, allowing clients to build a nest egg without taking out a traditional IRA or other type of retirement account.
Choosing a financial advisor who specializes in retirement advice is important. Not only should he or she have the knowledge of the various options available to you when it comes to retirement planning, but also must be financially fit to guide you through these important life changes. Most advisors who specialize in retirement management are independently owned financial companies, so they are more likely to push for the most aggressive investment strategies. In addition, these companies have a long standing history and are therefore less likely to be impacted by short-term market fluctuations. When working with a retirement expert, you should confirm that he or she is licensed, CPA, and has years of experience in helping people reach their retirement goals.
Once you have chosen your financial advisor, you should sit down with him or her to discuss your retirement plans. Your adviser should help you identify the appropriate retirement plans that will suit your lifestyle and provide you with sufficient income on a steady basis once you quit working. As you work through the process of planning for major life changes, you should keep in mind that investing can take some time. Even if you follow all the recommended guidelines and choose a qualified plan, you may not be able to invest all of the funds that you have accumulated. You should work with your financial advisor to make sure that you can afford your required monthly payout.
Once you have money allocated for retirement planning, you will need to decide what your lifestyle will look like upon leaving the workforce. Most advisors will recommend that you change careers to something that will create a higher income while offering you additional flexibility. Some advisors may even advocate the complete abstinence from working in order to save up for an early retirement. In general, the best time to transition into a more sedentary lifestyle is when your salary is not growing as rapidly as expected. Unfortunately, this does not offer a lot of time to devote to saving for retirement income.
Fortunately, there are many excellent retirement planning options available to you today. Many qualified financial advisors and insurance companies offer a variety of options through which you can achieve financial independence. If you choose to pursue insurance plans, you will probably find that your advisor has a number of great options that can benefit you once you start to age. Insurance advisors can also help you set up a qualified plan that will work for you. Financial advisors may be able to customize a plan for your specific needs and goals. Regardless of what you choose, it is important to realize that financial retirement planning should be a high priority and one that you will work to maintain throughout your life.