An annuity is a financial product that converts accumulated savings into guaranteed income.  In a very basic sense, annuities:

• Turn a sum of money into a series of payments or a “stream of income.” 
• Guarantee the stream of income over a specific timeframe.

Although mentioned previously, it is worth noting again that Moshe Milevsky is the most active, creative and interesting voice in the asset decumulation industry.

Moshe produces copious amounts of outstanding materials that shed light on the world of annuities for both professional and consumer audiences.

NAPFA is the National Association of Personal Financial Advisors.

NAPFA membership consists of financial advisors who provide comprehensive financial planning services on a fee-only basis.

NAPFA member David B. Jacobs serves as a representative for this interview.  David serves on the committee for both the School of Retirement and the School of Risk Management for NAPFA University.

Annuity Digest: Please tell us a bit about NAPFA and how the organization serves financial services consumers.

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:

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.

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.

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.