Income Strategies
The deferred income annuity, aka longevity insurance, is favored by academics and is mandatory in Germany and Singapore. Here's a compelling new way to explain its value to clients,...
The Essence of Goal-Based Investing
Goal-based investing is more than just mental accounting that assigns labels like “house,” “college” or “retirement” to different pots of money. It's ultimately about risk management, as we learned...
Advisors: Give this ‘Tilt’ a Whirl
Last month, we reported on John Walton's "tilt" method of fine-tuning systematic withdrawals in retirement. New research by the Texas hydrologist-turned-retirement income specialist combines tilting and income annuities. ...
DC plans still slow to embrace lifetime income: Willis Towers Watson
Most employers prefer education and planning tools, and partial or systematic withdrawals during retirement, to annuities or other managed payout options, which consultants called “more effective."
A new topic for Brits to argue about: Decumulation
Two UK small-plan providers, The People's Pension and Now Pensions, don't want NEST, the public DC option for small companies, to offer a retirement income strategy in competition with...
Proof that SPIAs Still Make Sense
Even when interest rates are low, adding a lifetime income annuity to a fund portfolio 1) reduces the risk of portfolio ruin, 2) increases current income, and, 3) if...
Scaling Retirement Solutions
At the EDHEC Risk Institute in France, financial researchers are trying to figure out how advisors can leverage technology to "mass customize" the goal-based approach to retirement income planning....
Eight core ideas for retirement planning: Wade Pfau
Here are eight useful principles from the award-winning economist and professor of Retirement Income at The American College of Financial Services.
DFA and S&P Collaborate on STRIDE Index
STRIDE stands for Shift To Retirement Income and DEcumulation. 'We see the index as an appropriate benchmark for the transition from wealth accumulation to income,' said Philip Murphy, vice...
Video: Income ‘Roundtable’ at The American College
Retirement income sources, including annuities, reverse mortgages, Social Security and LTCI, were topics of this two-hour seminar from the Retirement Income Certified Professional program at The American College. (Above:...
Tales from the Annuity Frontier
Three pioneers in the creative use of annuities in retirement portfolios--Wade Pfau, Joe Tomlinson, and Steve Vernon--have created an "efficient frontier" for deferred income annuities in two reports published...
No-Nonsense Income Planning
Jim Otar has explained his "zone" approach to retirement income planning in hundreds of presentations to thousands of advisors since 1997. He spoke at the IMCA retirement conference in...
RetirePreneur: Mark Warshawsky
With his new venture, ReLIAS LLC, the well-known retirement scholar-turned-entrepreneur Mark Warshawsky plans to market a process for helping retirees build ladders of single premium immediate annuities with part...
Key Factors to Consider When Buying a Deferred Income Annuity
Advisors should focus on the DIA's ability to take pressure off the client's investment portfolio, rather than on the size of the DIA's payout, according to this post on...
TIPS for the Long Run?
Whether you'd prefer the new Dimensional Target Date Retirement Income Funds over one of the "big three" TDFs might depend on whether you share Robert Merton and Zvi Bodie's...
Principal Adds ‘In-Plan’ Deferred Income Annuity Option
Participants in Principal Financial defined contribution plans will be able to buy deferred income annuities a little at a time or in a lump sum just before retirement.
Go Ahead, Buy the Harley
New research in the Journal of Personal Finance shows why retirees can spend 20% more in early retirement than the 4% rule allows. In our latest research roundup, we...
Takeaways from the FPA Conference in Boston
At the Financial Planning Association's Business and Education Conference in Boston last weekend, Bill Reichenstein talked about tax-efficient withdrawal strategies, Steve Deschenes made a case for income-oriented American Funds,...
A Conservative Retirement Portfolio in 3 Buckets
The Director of Personal Finance and senior columnist at Morningstar offers a three-bucket strategy for retirees who want to draw income from a diversified portfolio over a 15-year time...
How to Personalize Withdrawal Rates
Safe spending rates range from 2% to 10%, writes researcher Luke Delorme in the Journal of Financial Planning. It all depends on when people retire, how much guaranteed income...