24 January 2020: Dynamic Planner is set to launch a unique addition to the growing market for decumulation solutions, the Dynamic Planner Risk Managed Decumulation (RMD) Service.
Advisers and ultimately their clients will soon be able to quickly and fairly compare decumulation investment solutions, helping guard against unwelcome surprises in future annual reviews.
Chris Jones, Dynamic Planner Proposition Director said:
“We are all more than familiar with the drivers behind the need for decumulation services and products, but, to date, only a handful of solutions have been launched and these are yet to enjoy the market share they deserve. In a rising market their unit price performance has not compared well with existing accumulation solutions but such a comparison fails to consider the needs and outcome of a target market needing to encash units on a monthly basis. We hope that by identifying those solutions that manage monthly risk and categorising them together a more fair and accurate comparison can be more easily made by advisers.”
The Dynamic Planner RMD service provides advisers with a simple route to suitable solutions, saving them time and making life easier. It gives advice firms confidence that what has been promised, in terms of a fund’s expected risk and return, is actually delivered. Clients’ capital crucially is also likely to last longer.
Chris Jones added:
“Advisers have been able to research solutions that distribute an income and advice on portfolios that enable the client to take their regular withdrawals from cash for years. However, to date it has not been easy to research solutions from which it would be suitable to take regular monthly withdrawals by encashing units. Our Risk Managed Decumulation service is the answer. It is unique in its approach as it focuses on sequencing risk by controlling the size of monthly losses – instead of looking at annual volatility. When a client introduces additional risk, by encashing units monthly to pay for a fixed capital withdrawal, this is managed more closely so that the annual risk to capital remains the same. As a result, capital is more likely to last longer.”
Dynamic Planner will provide more details about the Dynamic Planner Risk Managed Decumulation Service over the coming weeks.
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