Decumulation Diversification – Hedging Against Potential Health Care Costs

Join us for a look at how registered index-linked annuities (RILAs) with an income rider can help fund future expenses in a modernized, asset-and cost-efficient strategy. This presentation will focus on clients who already have a high probability of success. By utilizing a RILA within a financial strategy, we will show how a structured annuity can help manage the potential downside risk of a client’s overall portfolio, potentially increase drawdown efficiency, and add a lever of protection from uncertain expenses in a tax-effective manner. 

Competency Level: Foundational
FPA Competency: Critical Thinking
CFP Board Topic: Retirement Savings and Income Planning
CFP Board CE Credit Hours:

• Understand the impact of unexpected health care costs on retirement planning. Learners will be able to explain how unplanned medical expenses, such as long-term care or nursing home costs, can affect retirement income, asset longevity, and overall financial security.
• Evaluate strategies for funding health care costs in retirement. Learners will be able to compare traditional approaches (self-funding, long-term care insurance, product-based solutions) and assess how each can help mitigate the financial risks associated with health care needs in retirement.
• Analyze the role of guaranteed income products in improving retirement outcomes. Learners will be able to describe how incorporating guaranteed income sources, such as annuities with income multiplier benefits, can increase the probability of retirement success, reduce reliance on portfolio withdrawals, and provide financial stability in the face of longevity and market risks