Articles
Reference articles and commentary on annuities, lifetime income, and retirement finance. Updated over time.
Mark Warshawsky on the Retirement Income Market
An interview with Mark Warshawsky discussing his book Retirement Income and his perspective on challenges that exist in the current environment.
Maddy Dychtwald on How Women are Driving a Transformation of the Market for Financial Advice and Products
Maddy Dychtwald is a nationally recognized author, co-founder of Age Wave, and a leading expert on the changing demographic trends shaping the marketplace, the workplace and our lives.
Lower Volatility May be Short-Lived
Capital market volatility is a critical factor in the financial lives of retirees and near-retirees. Volatility plays a major role in the pricing of many different types of annuities, and volatility is the major driver of sequence of returns risk. 2009 was a year of extremes in terms of…
Longevity Risk and Portfolio Protection Without a Variable Annuity
Two of the most daunting risks faced by the majority of retirees are:
Low or No Surprises Supports the Case for Annuities in Retirement
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,…
Listen to Zvi Bodie When it Comes to Retirement Planning
Zvi Bodie is absolutely one of the most honest and refreshing voices in finance and economics.
The Link between Annuities and Retirement Well-Being
It appears that people who have access to the pension -like, guaranteed lifetime income that comes from annuities might be happier in retirement.
Keeping an Eye on Fiduciary Status
The proposed regulation that could expand fiduciary status to a broader set of financial advisors appears to be pending in Congress. The Dodd version from the Senate Banking Committee would potentially extend fiduciary status to broker-dealers and registered representatives. Broker-dealers are…
Lack of Dividends Make Equity Indexed Annuities a Tough Sell
Dividends contributed five percent of the 7.9 percent total return from stocks from 1802 through 2002.
The Kelly Formula and the Financial Crisis
The Kelly Formula (also known as the Kelly System or Kelly Criterion) is a proportional betting system that optimizes a gambler’s bankroll. In other words, it is a money management system that enables the maximum rate of compound wealth concurrent with zero chance of ruin.
S. Jay Olshansky on Why the Message is All About Extending Health
Longevity expert S. Jay Olshansky discusses biodemography and why it is important to focus on healthy aging rather than just extending age.
Is it Time for a Paradigm Shift to Life-Cycle Investing?
Life-cycle investing has been around for many years. Zvi Bodie is one of the most articulate and visible advocates. His book "Worry Free Investing" lays-out the fundamentals and makes a case for the life-cycle approach to investing. In a nutshell, life-cycle investing focuses on smoothing…