Gowri Shankar of the University of Washington has published an article on the use of Treasury Inflation-Protected Securities (TIPS) and longevity annuities.
Shankar suggests that a combination of TIPS and longevity insurance provides an optimal strategy when the objective is guaranteed retirement income.
Shankar demonstrates that the combination affords the ability to sustain relatively high withdrawal rates while minimizing the probability of financial ruin in retirement. The strategy also provides relatively high levels of flexibility with retirement assets.
Source: All Business
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