Liability Driven Investing to Help Clients Achieve Their Goals

BuddyIns partners with client-centric financial planners to help clients with long term care planning. Visit BuddyIns here to learn more.

"Information is liberating." - Kofi Annan

Welcome to Financial Planning Innovation, your weekly spot for planning stories and strategies that matter to you and your clients.

Click Subscribe above to be notified of each free edition.

Also, subscribe to The Insurance Experts and Inside the Mind of an Actuary where more experts share their stories.

"I have a client Jim who was overfunded [toward his retirement needs] and could have left money in the market, but I put the question this way. Would you rather leave the money in the market and have an 85% chance of hitting your goals? Or would you prefer to have a more defined plan with a lower rate of return, but the chance of your success approaches 100%? " - Chris Grande

On today's episode of Financial Planning Innovation, I interview Chris Grande who is a comprehensive financial planner. We discuss the liability driven investment approach to wealth management.

Liability driven investment takes an approach to financial planning from a risk management perspective. You client's objectives are not always simply to maximize wealth or leave the largest inheritance. Many clients would prefer to optimize their plan by investing with a higher degree of certainty that they reach certain retirement goals.

Liability driven investment involves defining your needs for the future. If your clients can estimate what retirement income they might need each year in retirement then they have a clearer idea of the target. Taking this approach year by year then allows the clients to work backward and determine what they need to save today to achieve those goals.

This approach is agnostic to the investment or insurance instrument that is used. Once the goals and risk tolerance are better understood in this way, the optimal investment, life, long term care, or annuity insurance solutions tends to become clearer.

Join The Community of LTC Planning Experts at BuddyIns.com

BuddyIns is a community of long term care insurance specialists. We are dedicated to helping families across the country with customized LTC planning solutions.