Articles
In-depth analysis of how lifetime income products work, what they cost, and how to evaluate them. Mechanics first, no product recommendations.
Warren Buffett Comments on Social Security as a Form of a Nationalized Annuity
Warren Buffett had some comments on the life insurance and annuity industries during the Berkshire Hathaway annual shareholders conference held on Omaha over the past weekend.Buffett's comments on Social Security as a form of a nationalized annuity were made on response to a question about the…
Noteworthy Reads - October 18, 2013
- The value of health and longevity -- ”a 1 percent reduction in cancer mortality would be worth $500 billion” (Dartmouth College) - 2 formulas intended to optimize annual retirement withdrawal strategy -- 1 approach is dynamic and the other is based on required minimum distribution (RMD) rules…
Are Equity Indexed Annuities Really the Top Performing Asset Class Since 1995?
A recent article in Forbes magazine discusses the pros and cons of equity indexed annuities.On the negative side the author makes a high level reference to costs and questions whether equity indexed annuity owners receive fair value for what they pay.The interesting part of the article, though, is…
Zvi Bodie on the Safety of Stocks in the Long Run
The notion that stocks are risky in the short-run but safe in the long run is a dangerous financial fallacy according to Boston University professor Zvi Bodie.
Yield-Starved and Losing Patience
Millions of savers around the world starting to realize the implications of negative real interest rates as far as the eye can see.
Writing the Book on Retirement Portfolios
An interview with the author of Retirement Portfolios--the definitive guide to constructing and maintaining portfolios that generate sustainable retirement income.
The World is Very Long on Longevity Risk
Longevity risk is clearly a huge growth market. One has to wonder, though, where the capacity to address this market opportunity will come from.
On Withdrawal Rates
In any ordinary annuity illustration, what is clear is the fact that any withdrawal rate in excess of the discount rate is subject to longevity risk.
Will You be Able to Retire?
A series of articles examines the financial profile of an average American household and its ability (or inability) to retire.
Why Your Retirement Just Became More Expensive
Retirees should remember that retirement gets more expensive every time the Fed comes to the rescue of the markets and banks with some sort of extremely accommodative policy.