Tools for Longevity Analysis Improve

A critical piece of information that underlies every retirement income plan is the client (or clients’) life expectancy. That estimate influences portfolio allocations, income withdrawals, and spending patterns. In most cases, however, the forecast is a rough guess, at best. At the most basic level you can take a number from the IRS’s tables. If you want more precision, you can ask clients about their family history and the state of their health, assuming clients are comfortable sharing that information with you.

If you want a more precise forecast, the “Customized Longevity Planning Report” (CLPR) from 21^st Services (www.21stservices.com) could be the solution. According to 21^st Services’ CEO Jack Kettler, the company was originally founded to produce life expectancies for the life settlement industry. Because the estimation process can be used in multiple instances, the company established a financial planning services division, which offers the CLPR.

The CLPR’s results are based on an underwriting process that reviews the client’s medical, personal and family history. The cost varies depending on how the client’s health information is gathered:
? Platinum CLPR: 21st Services gathers all medical records ($49) or the planner or the client gathers the medical records and provides them to 21^st Services ($295)
? Silver CLPR: 21st Services gathers the information in a phone interview with the client ($110)
? eCLPR: The client provides the information online at 21^st Services Web site ($60).