Retirement Income Planning & Strategy Analysis Tool (RIPSAT)

RIPSAT is FIRVA®’s proprietary Retirement Income Planning & Strategy Analysis Tool that enables Wealth Managers to compare three distinct retirement income approaches for their clients, using FIRVA® benchmarks.

RIPSAT produces a side-by-side quantitative comparison of nine bond ladder strategies against a Single Premium Immediate Annuity (SPIA). It displays 16 metrics over a potential 30-year cashflow horizon. The output includes the exact par amount of bonds or Target Maturity ETFs to purchase for each year of the ladder — take it directly to the trading desk for implementation.

Three Retirement Income Approaches

RIPSAT is a tool that compares all three major retirement income approaches quantitatively, side by side, using today’s actual market rates – The Asset Management Approach (4% Rule), The Liability-Driven Approach (Bond Ladder + DIA), and The Insurance Approach (SPIA).

Nine Bond Ladder Strategies

All nine strategies share the same Deferred Income Annuity (DIA) component. Only the underlying yield curve changes. Each strategy is constructed from instruments available in today’s market. No strategy has a coverage gap — ETF gaps are filled automatically with FIRVA® UST benchmark rates.

Non-callable rule — absolute: RIPSAT never uses callable bonds in any ladder strategy. ETF target maturity funds may be acceptable substitutes where applicable. Use FIRVA analytics on the ETF and underlying holdings to ascertain if they are appropriate selections based on credit profile and percent of callable bonds.

Tool Inputs

RIPSAT accepts ten user inputs on a single User Input sheet.

Summary Output — 16 Metrics

The Summary sheet displays all nine strategies side by side across 16 metrics, organized in three groups. Conditional formatting highlights favorable and unfavorable outcomes on the two Comparison metrics relative to the SPIA benchmark.

The Credit Research Connection

Bond ladders built with RIPSAT can create an immediate and ongoing need for independent credit research. FIRVA®, of course, can provide that research.

A single credit default in a bond ladder can significantly impact the cashflow plan for that year. Pre-purchase credit review using FIRVA®’s independent scores — free from rating agency and broker-dealer conflicts — is the appropriate response to that risk.

Competitive Differentiation

RIPSAT and FIRVA® credit research is a combined platform that integrates all the following capabilities.

• Yield benchmarks sourced from actual bond trades
• Independent — no underwriting or broker-dealer conflicts
• Nine bond ladder strategies compared in a single tool
• Pre-purchase credit review integrated at construction
• Ongoing portfolio monitoring per position
• Non-callable bond enforcement — absolute rule
• Proprietary yield curves across the full credit spectrum

Who Should Use RIPSAT

RIPSAT is designed for Wealth Managers and Registered Investment Advisors who actively manage retirement income for clients, particularly those who:

• Serve clients at or approaching retirement who require consistent, predictable cashflow up to a 30-year horizon
• Are evaluating or constructing individual bond portfolios and need a framework to compare strategies quantitatively before making a recommendation
• Want to present clients with a side-by-side comparison of multiple retirement income approaches rather than a single recommendation in isolation
• Require a defensible, documented pre-purchase credit due diligence process for fixed income holdings
• Manage portfolios where independent credit assessment — free from rating agency or broker-dealer conflicts — is a fiduciary priority