Retirement Planning

Living at a level of comfort you’re used to when you retire requires taking steps to ensure that you have enough money. Retirement planning involves examining your goals for retirement, and then figuring how much you need to meet those objectives. You need to figure-out when to start investing and saving, how much you need to save, and what you may expect to receive from other sources such as Social Security. Retirement objectives, costs and resources are issues you need to take stock of before you quit working. Otherwise, you may find that you can’t afford to stop working.

Investment Risk and Longevity Risk Should be Seen as Equal Pillars in Investment Decision Making Process

Longevity risk is increasingly seen as a critical consideration in retirement planning process. Investment risk and longevity risk should be equal pillars guiding investment decisions. Translation: A low-risk investment strategy that generates safe but limited returns – while a comfortable and reasonable near-term investment approach – will not be sufficient to fully fund retirement years that could last several decades. Source: Christian Science Monitor Full Story
Key Phrases: 

Harvard Professor Roland Fryer – The Annuity Puzzle and Why People are More Comfortable Flying if They Can See the Cockpit

The annuity puzzle refers to the fact that few people choose to annuitize even a portion of...