Warren Buffett Comments on Social Security as a Form of a Nationalized Annuity
Warren Buffett had some comments on the life insurance and annuity industries during the Berkshire Hathaway annual shareholders conference held on Omaha over the past weekend.Buffett's comments on Social Security as a form of a nationalized annuity were made on response to a question about the…
Noteworthy Reads - October 18, 2013
- The value of health and longevity -- ”a 1 percent reduction in cancer mortality would be worth $500 billion” (Dartmouth College)
- 2 formulas intended to optimize annual retirement withdrawal strategy -- 1 approach is dynamic and the other is based on required minimum distribution (RMD) rules…
Are Equity Indexed Annuities Really the Top Performing Asset Class Since 1995?
A recent article in Forbes magazine discusses the pros and cons of equity indexed annuities.On the negative side the author makes a high level reference to costs and questions whether equity indexed annuity owners receive fair value for what they pay.The interesting part of the article, though, is…
Zvi Bodie on the Safety of Stocks in the Long Run
The notion that stocks are risky in the short-run but safe in the long run is a dangerous financial fallacy according to Boston University professor Zvi Bodie.
Yield-Starved and Losing Patience
Millions of savers around the world starting to realize the implications of negative real interest rates as far as the eye can see.
Writing the Book on Retirement Portfolios
An interview with the author of Retirement Portfolios--the definitive guide to constructing and maintaining portfolios that generate sustainable retirement income.
The World is Very Long on Longevity Risk
Longevity risk is clearly a huge growth market. One has to wonder, though, where the capacity to address this market opportunity will come from.
On Withdrawal Rates
In any ordinary annuity illustration, what is clear is the fact that any withdrawal rate in excess of the discount rate is subject to longevity risk.
Will You be Able to Retire?
A series of articles examines the financial profile of an average American household and its ability (or inability) to retire.
Why Your Retirement Just Became More Expensive
Retirees should remember that retirement gets more expensive every time the Fed comes to the rescue of the markets and banks with some sort of extremely accommodative policy.
Why You Should Care About Predictive Medicine and Anti-Aging Science
Much of my professional background has been focused around the healthcare industry and I find the fields of predictive medicine and anti-aging science fascinating.
The latest developments in these fields will increasingly impact the length and quality of human life, and as a result, I believe…
Why Warren Buffett's Prescription Will Not Work for Retirees
The reality is that price volatility or beta does matter very much to retirees because financing current consumption with volatile assets is problematic.
Why Volatility is a Retirement Killer
Volatility is a fact of life when investing in the stock market.
As indicated in the chart below, the Chicago Board Options Exchange volatility index has had six meaningful spikes (index levels exceeding 30) since 1990, with by far and away the most extreme spike occurring over the past couple of…
Why Is Teresa Ghilarducci Considered "The Most Dangerous Woman in America"
Teresa Ghilarducci is a 51 year old economist who directs the Schwartz Center for Economic Policy Analysis at the New School in New York.Why was Ghilarducci--who sure looks like a nice person in her picture--labeled the most dangerous woman in America in a recent US News & World Report column? The…
Why Retirees Should Listen Closely to Bill Gross
The message to retirees is clear: save more or plan to spend less because retirement is very expensive in a zero bound world.
