Articles
Reference articles and commentary on annuities, lifetime income, and retirement finance. Updated over time.
Why Volatility is a Retirement Killer
Volatility is a fact of life when investing in the stock market. As indicated in the chart below, the Chicago Board Options Exchange volatility index has had six meaningful spikes (index levels exceeding 30) since 1990, with by far and away the most extreme spike occurring over the past couple of…
Why Is Teresa Ghilarducci Considered "The Most Dangerous Woman in America"
Teresa Ghilarducci is a 51 year old economist who directs the Schwartz Center for Economic Policy Analysis at the New School in New York.Why was Ghilarducci--who sure looks like a nice person in her picture--labeled the most dangerous woman in America in a recent US News & World Report column? The…
Why Retirees Should Listen Closely to Bill Gross
The message to retirees is clear: save more or plan to spend less because retirement is very expensive in a zero bound world.
Why Indexed Financial Products are Appealing
I am currently researching and am likely to purchase an indexed universal life insurance product. This first-hand research and learning process has been interesting and is worth sharing.
Why Low Interest Rates Increase the Cost of Your Personal Pension Plan
Retirees and those saving for retirement should think of themselves as the managers of their own personal pension plan.
Why Low Interest Rates Have a Silver Lining
For retirees who are starved for yield, it might be worth taking a look at an income annuity because low interest rates magnify the importance of the mortality yield.
Why is the Growth in Health Spending Considered a Problem?
The crux of the problem seems to be the inability of those who have promised to pay for healthcare spending to actually do so.
Why Fixed Annuities Could Prove Toxic in an Era of Financial Repression
Retirees are on the losing-end of the financial repression equation since their income is based on negative real interest rates.
Why Financial De-Risking May Leave Consumers at a Loss
Financial risk does not just disappear. One party’s reduction in risk is likely passed along in some form to a counterparty.
Why Even Bother with Self-Service Investing During Retirement
I have a huge amount of sympathy for many of the people who are recently retired or close to retirement.
Why the CPI-E should be the Focus of Seniors Concerned about Inflation
The consumer price index for the elderly or CPI-E has weightings that are more appropriate for retirees who have higher medical care and housing expenses.
Why Capital Preservation is a First Principle
While it is good to be in the market during bull periods, it is best to preserve capital and be out of the market during the bear periods.