Retirement

A Visual Representation of Longevity

There is an interesting blog that appears to be affiliated with the British pension consulting firm Redington. The “Red Blog” offers pension-related content from a group of authors who are both formally and informally associated with Redington. Not surprisingly, longevity trends and longevity risk are prominent topics on the Red Blog. The design of the blog and the visual representation of dry and fairly abstract topics are unique. For example, this graphic provides an interesting...
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How Much More Volatility Can Retail Investors Tolerate?

Retail investors in the U.S. have been exiting in droves in light of the extreme market volatility . A Bloomberg article hits the nail on the head when questioning the psyche of the average U.S. fund investor. Mutual fund flows indicate that the damage to psyches is real and lasting: 33 straight weeks of fund withdrawals after May 10 2010 totaled $98 billion. Fund redemptions total $74 billion thus far in 2011 $23.5 billion has flown from U.S. equity funds in the week ending August 10, 2011. A...
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SOA Paper Examines Retirement Income Reality Gap

A recent paper sponsored by the...

Why Low Interest Rates Have a Silver Lining

As discussed in a recent post, ultra low interest rates are an...

There is no Free Lunch for Retirees when it Comes to Investment Risk

Retirees have every reason to be an extremely risk averse bunch.  After all, most of them have an immediate or near-term need to draw income from their assets.  This need for income should result in zero tolerance for investment risk or reduction in value of the assets that are intended to produce the retirement income...

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