In a Fortune article titled “Why Stocks Beat Gold and Bonds,” Warren Buffett provides a glimpse of his upcoming shareholder letter.

While Buffett’s advice is perfect for investors who have a long-term perspective, anyone near or in retirement may want to think twice about acting on the prescription.

The core of Buffett’s advice is as follows:

What options are available to a soon-to-be retired household that is financially constrained?  What levers can be pulled if desired retirement spending is not realistic in light of retirement savings?

Putnam Investments President and CEO Robert Reynolds spoke on the need to address America’s lifetime income challenge at the recent Retirement Income Industry Association (RIIA) conference in Chicago.

While Reynolds has spent most of his career in leadership positions in the investment management industry, his comments and recent initiatives at Putnam focus on what Reynolds believes should be a golden age for innovation in the area of guaranteed income solutions.  

The fear index seems to be signaling that all is well.

The Chicago Board Options Exchange volatility index (“VIX”) represents the short-term (30 days) implied volatility of a S&P 500 option.  The VIX—also known as the fear index—has returned to pre-financial crisis levels.

The last time the VIX was at this level was last April—right before the index surged as a result of the flash crash and sovereign debt rumblings.  Before that, comparably low levels date back to pre-financial crisis 2007.

Financial advisors and retirees should be aware of the profound impact that a low volatility portfolio can have on investment performance and, consequently, retirement spending sustainability.

Sequence of returns discussions typically focus on the downside or risk involved with the path of investment returns. 

In a basic sense, information theory measures the level of surprise in a message.

A highly informative message will come as a complete surprise and tell you something about which you had no previous knowledge.

Sounds pretty good, right—of what use is it to be told what you already know?  Well, there are actually cases where information is not so welcome.

Glenn Daily is one of the top financial advisors in the country. 

Specializing in life insurance and annuities, Glenn is widely recognized for his deep technical expertise and high level of objectivity as his services are strictly on a fee-only basis.

The annuity buying decision is complex and can be affected by commission-based financial incentives. Glenn’s writing, interviews and services are a great way to cut through some of the clutter.

Many financial advisors seem conditioned to wear annuity criticism as a sort of badge of honor. 

As the past couple of years have so painfully revealed, however, this conventional wisdom rests on shaky ground.

What types of questions might a client present to an advisor who appears to have a reflexive inclination to dismiss most or all forms of annuities?  Consider the following:

1.  How are my assets hedged against longevity risk?  In other words, how am I protected from outliving my money?