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Part Two of the Interview with Wharton Professor David Babbel
This is the second part of an interview with Professor David Babbel.
Part one can be found here.
An Interview with Wharton Professor David Babbel - Part One
This is the first part of an interview with Wharton Professor David Babbel.
Professor Babbel led the fixed indexed annuity study that is discussed in several previous posts on Annuity Digest. These posts can be accessed by clicking here.
Part 2 of this interview will be posted later this week. Annuity Digest would like to thank Professor Babbel for spending time with us for the interview.
Annuities and the Financial Media – Don’t Believe Everything You Read
The annuity industry is a large and increasingly important part of the financial services landscape. Millions of Baby Boomers are retiring and will be in need of stable sources of income and protection from longevity risk.
Given the industry’s size and importance, the lack of positive press, prevalence of negative press, and general misunderstanding of the products is truly staggering—just tune in to any Suze Orman show that involves a question on variable annuities.
The Absolute Return Unicorn - Investment Products Offering Both Gains and Protections Prove Elusive
The asset management industry has struggled to provide older investors and retirees with investment products that provide returns with little or no risk of losing principal.
In other words, the industry has not had any success in developing investment products that provide return without any risk.
Risk Tolerance and Fixed Indexed Annuities - Why Rational Investors Will Prefer Annuities to Alternative Investments
This is a continuation of a series of posts that discuss a fixed indexed annuity study from Professor David Babbel.
More from Professor Babbel's Study - The Long-Run View of Equity Indexed Annuity Performance
The first part of Professor Babbel's presentation looked at the comparative performance of fixed indexed annuities and alternative investments over a 15 year period.
This next set of slides looks at performance over a much longer time period--dating back to January 1926.
Listen to Zvi Bodie When it Comes to Retirement Planning
Zvi Bodie is absolutely one of the most honest and refreshing voices in finance and economics. Professor Bodie also happens to be an advocate of life-cycle investing.
The Business Week Cover Story on Retirement – Life-Cycle in Theory but Status Quo in Practice
Business Week just ran a timely cover story on the post-financial crisis retirement landscape. Portions of the feature present a remarkable contradiction. While there is a clear endorsement of life-cycle investing as a post-financial crisis retirement planning alternative, most of the actual discussion and recommendations are based on conventional approaches—asset accumulation, diversification, asset allocation with relatively heavy exposure to market risk, precautionary savings, and draw-down rates.
Slides from David Babbel's Fixed Indexed Annuity Study - Recent Historical Evidence
This is a follow-up on two previous entries that discuss the fixed indexed annuity study from Wharton Professor David Babbel.
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.