Modern Retirement Theory (MRT), developed in 2008–2009 by Jason K. Branning, CFP®, RICP®, and M. Ray Grubbs, PhD, is a safety-first, goal-driven approach to retirement planning. MRT rests on six premises: (1) retirement is an absolute goal; (2) planning must be individualized rather than based on historical patterns; (3) the future is inherently uncertain; (4) funding must be secure, stable, and sustainable; (5) the entire retirement balance sheet—including assets, cash flows, and items like Social Security—should be evaluated; and (6) prioritizing how retirement is funded is essential to managing risk. Together, these principles support a comprehensive, personalized approach to building reliable income.
A central innovation in MRT is its use of hierarchical funds structured to meet two unknowable conditions: longevity and conditions within longevity. The Base Fund covers essential expenses with income sources that meet the 3-S Matrix (secure, stable, sustainable), producing $1 of net income for every $1 of essential spending. To guard against disruptions, the Contingency Fund protects essential lifestyle needs by categorizing risks as known, unknown, and unknowable and applying the 3-R framework: risk recognition, reduction, and acceptance of residual risk. The Discretionary Fund supports non-essential, delayable expenses such as travel or major purchases. The Legacy Fund preserves and transfers wealth to beneficiaries, growing independently of the other funds without compromising their security.
*CE/CPE Eligible: 1.0 CE credit(s) is(are) available to FEN Members with these designations: CFP, CLU, ChFC and RICP.
Field of Study: Specialized Knowledge
Prerequisites: There are no prerequisites for this session.
Advanced Preparation: None
Program Level: Basic
Delivery Method: Group Internet Based
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Jason is a CERTIFIED FINANCIAL PLANNER™ practitioner and Retirement Income Certified Professional® specializing in retirement planning at BWM, LLC. He served as a contributing author for the Financial Planning Association’s (FPA) general public website. Jason helped to found Modern Retirement Theory, the comprehensive retirement planning process that offers customized solutions for each individual retiree. Jason’s articles Modern Retirement Theory and Using a Hierarchy of Funds to Reach Client Goals (with M. Ray Grubbs, Ph.D.) have been published in The Journal of Financial Planning’s Retirement Income Special Report. As well, content from these works appear in the Retirement Management Analyst textbook and the Retirement Income Certified Professional® curriculum.
Ray brings more than five decades of financial industry experience to his work with financial advisors, blending deep academic expertise with practical insight from a lifelong career in banking and risk management. A longtime faculty member at Millsap College's Else School of Management, Ray has worked inside financial institutions since age 17—as an employee, consultant, board member, and founding member of First Commercial Bank in Jackson.
Ray is best known in the advisory profession for co-developing Modern Retirement Theory, an innovative, research-driven framework created with colleague Jason Branning. Their work has received wide recognition for advancing the Safety-First approach to retirement planning, providing advisors with a structured method to evaluate risks, align client goals, and build resilient retirement income strategies.