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RetirementWorks® II
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For financial professionals and employers, concerned with financial planning for people approaching, entering or already in retirement
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What RetirementWorks® II is
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RetirementWorks® II ("RW2"), is a revolutionary new software package that helps people
figure out what they should do about their finances as they approach, enter, or manage
their retirement.
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Why is it revolutionary? RW2 is an entirely new approach to planning retirees' finances,
which we believe have not been adequately served by previously available software - our
own or others'.
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Unlike other retirement models, RW2 strives to answer all of the major financial questions that
retirees face - as many as 25 or 30 issues per household. Few, if any, families need to worry
about quite that many, but most families face a dozen or more at the time of retirement.
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Why RetirementWorks® II is so ambitious
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RetirementWorks® II is retiree-focused. We are trying to meet the needs of real people, and answer
the questions that concern real people. Some of the answers naturally lead to product sales for financial
institutions, and some do not. We believe that all the questions need to be answered, whether they lead to
product sales or not, and that the company that can answer all the retiree's questions is the company that
will sell the products.
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Most people going through the transition into retirement have many questions, and either need or want
answers to most of them right away. Making so many decisions at once is complicated, because most
decisions affect others. If you cannot look at all of the decisions in an integrated fashion, you
cannot confidently give advice on any of them individually.
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For most retirees and their families, the most urgent question is usually whether there will be
enough money to get by, for however long is needed, and despite whatever happens along the way.
Although we can never provide absolute assurance, we can offer reasonable assurance by taking into
account all the factors that increase or reduce the family's cash flow, whether these are regular and
predictable or whether they kick in only under certain circumstances. Without looking at all key aspects
of the family finances simultaneously, this kind of analysis can only be done in a shoddy and inadequate way.
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Doing an incomplete job is too big a risk. Once people retire, their ability to recover from major financial
mistakes is vastly reduced. The more complete the advice they get, the less likely they will suffer irrecoverable damage.
Considering only a handful of issues is asking for trouble - and is almost guaranteed to produce adverse results with regularity.
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Despite all this thoroughness, RetirementWorks® II is simple and easy to use
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We have made the system so easy to use that the person in the family who pays the
bills can easily enter the necessary data directly into the system. In fact, this
is the way we recommend that it be used, even when a professional financial advisor is
involved. The client is the one who has to gather the information - why make a second
person go through it too?
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It is true that the calculations and analyses the system performs while processing the
household financial information are remarkably complex and innovative. But no one ever
sees that. All they see are the results, which are presented in quite a simple form.
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The system produces one or more suggested plans of action, each of which contains specific
recommendations about what financial choices and changes should be made. Each plan also is
evaluated with a simple "report card" that anyone can understand, which grades the plan under
both "expected" and adverse circumstances. If the plan is unacceptable for any reason, it
can be modified until the results are satisfactory.
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The system also adapts to the person's style: in a hurry or not, comfortable with numbers or not.
So it not only starts with a very simple and understandable presentation concept, it tunes that
concept to the preferences of the retiree.
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RW2 establishes a new level of consumer-friendly software.
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Monte Carlo analysis
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RetirementWorks® II is available in three versions. One, the original, uses non-stochastic scenario testing. Another
uses Monte Carlo analysis to test financial plans under randomized mortality and investment experience, as well as with
randomized medical expense costs, long-term care requirements, and high inflation scenarios. The third combines Monte Carlo
analysis with other stochastic modeling techniques to provide a faster computing model more suitable for internet use.
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When planning for retirees, mortality, investment, and other risks need to be taken into account. Monte Carlo models were the
first employed to do this, and have become very popular. But Monte Carlo modeling can easily be misapplied, and the results
hard to interpret. But by adding Monte Carlo analysis to the original RetirementWorks® II model that is already the most
robust in terms of analyzing the financial needs of the elderly, financial companies and advisors can have the best of both
worlds.
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Extremely affordable
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For financial institutions, RW2 costs much less than what you would have to pay elsewhere for far
less powerful software. Pricing is negotiable and depends on level of distribution and customization.
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For financial advisors, the annual license fee is $1,500. Contact us for details.
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For employers who wish to provide a tool for their employees who are approaching retirement, the price is
negotiable depending on the size of the workforce. Contact us for more information.
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Starting in the spring of 2007, the web-based version of RW2 is available directly to the public under the name RetirementWORKS® for YOU
(or RW2 for YOU™, for short). For more information click here.
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Sample report
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If you would just like to see a sample report in PDF format, take a look at a
Sample Report.
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Make RetirementWorks II part of a larger offering on retirement income/distribution planning
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We can customize RW2 to reflect the way your company does business, including your product rates, etc.
We can also modify the look of the program by using your graphics, colors, and
fonts, if you wish.
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For further information . . .
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We'd love to hear from you. Give us a call: Chuck Yanikoski, President, 978-456-7971,
or e-mail csy@StillRiverRetire.com.
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And for more information about some of the concepts behind this system, please take a look at our
papers posted on the Analyses of Financial Topics page.
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Still River offers a consumer version of this software, suitable for sponsorship by employers,
pension plans, voluntary associations, and other groups wishing to offer retirement advice
but not be involved in individual cases. For more information, visit the website of our
affiliate, RetirementWORKS®, Inc.
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Sample Report
Demo ID and Password
Pricing
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