Dr. Derek Tharp unpacks the limitations of conventional PoS outputs and demonstrates how guardrails, expressed in terms of dollars, can improve retirement income strategies and communication. Attendees will learn how to structure guardrail thresholds based on portfolio movements, apply dynamic adjustments grounded in personalized Monte Carlo simulations, and overcome common behavioral pitfalls by visualizing long-term strategy outcomes using HiMaV. Using practical examples, this session provides a blueprint for integrating guardrails and HiMaV. Advisors will learn how to:
- Differentiate between traditional Probability of Success (PoS) metrics and risk-based guardrails as communication tools in retirement planning.
- Set and adjust risk-based spending guardrails using Monte Carlo simulations.
- Evaluate the limitations of PoS frameworks and the behavioral advantages of dollar-based guardrails in client communication.
- Analyze the application of Historical Market Visualization (HiMaV) in illustrating long-term retirement spending experiences.
- Assess how risk-based guardrails and HiMaV tools can be used to enhance client trust and improve decision-making under uncertainty.
