The Link between Annuities and Retirement Well-Being
It appears that people who have access to the pension -like, guaranteed lifetime income that comes from annuities might be happier in retirement.
Keeping an Eye on Fiduciary Status
The proposed regulation that could expand fiduciary status to a broader set of financial advisors appears to be pending in Congress.
The Dodd version from the Senate Banking Committee would potentially extend fiduciary status to broker-dealers and registered representatives. Broker-dealers are…
Lack of Dividends Make Equity Indexed Annuities a Tough Sell
Dividends contributed five percent of the 7.9 percent total return from stocks from 1802 through 2002.
The Kelly Formula and the Financial Crisis
The Kelly Formula (also known as the Kelly System or Kelly Criterion) is a proportional betting system that optimizes a gambler’s bankroll. In other words, it is a money management system that enables the maximum rate of compound wealth concurrent with zero chance of ruin.
S. Jay Olshansky on Why the Message is All About Extending Health
Longevity expert S. Jay Olshansky discusses biodemography and why it is important to focus on healthy aging rather than just extending age.
Is it Time for a Paradigm Shift to Life-Cycle Investing?
Life-cycle investing has been around for many years.
Zvi Bodie is one of the most articulate and visible advocates. His book "Worry Free Investing" lays-out the fundamentals and makes a case for the life-cycle approach to investing.
In a nutshell, life-cycle investing focuses on smoothing…
An Interview with Retirement Planning Expert Henry Hebeler
Henry "Bud" Hebeler is a former Boeing executive who has been running a retirement planning company for over twenty years.
An Interview with Peter Nakada of RMS
Peter Nakada of RMS discusses longevity risk, structural modeling and the RMS LifeRisks model.
An Interview with Jack Marrion and John Olsen, Authors of Index Annuities: A Suitable Approach
Jack Marrion heads a research consultancy focused on the annuity industry and John Olsen is a practicing financial advisor .
An Interview with Gordon Woo of RMS
Premier catastrophe risk analyst Gordon Woo of RMS discusses the dynamic nature of longevity risk analysis.
Human Capital is the Best Inflation Hedge
Warren Buffett commented on the likelihood of future inflation during the most recent Berkshire Hathaway annual shareholder meeting and in his most recent shareholder letter.
Buffett’s advice for protecting against inflation involves two options:
Increase your earning power.
Invest in great…
How to Think About Longevity Insurance
A recent article discusses whether it makes sense to consider buying a longevity annuity.The author addresses the question from an investing perspective. He provides an example of a 65 year old person who uses $10,000 to purchase a longevity annuity that begins payments at age 85. At 85, this…
How Much Annuity Income Would the Median 401k Balance Produce?
Most people would be shocked by how little annuity income their 401k balance would produce.
How to Determine a Sustainable Level of Retirement Spending
What is the probability that a given level of spending is realistic or “sustainable” throughout one’s retirement?
Stated differently, what is the likelihood that a given level of retirement spending is fraught with longevity risk and will result in financial ruin—with ruin defined as the depletion…
Healthcare Reform Provides Insurance in Name Only
After a tough couple of years for former Federal Reserve Chairman Alan Greenspan and in an era when the phrase affordable health insurance seems like an oxymoron, it is time to provide some credit where credit is due.
