Links - Retirement

QUOTE OF THE POST

For many people, being asked to solve their own retirement savings problems is like being asked to build their own cars. —Richard Thaler, University of Chicago

CHART OF THE POST

RETIREMENT FINANCE AND PLANNING

 How Retirees Can Protect Themselves From Sequence Risk, WSJ. [This is about as superficial as it gets but it is mildly useful for traditional retirees (and not so much for early retirees)]  

Is Your Retirement Calculator Designed for Accuracy? Darrow Kirkpatrick at Can I Retire Yet?  

Selections from the Society of Actuaries May 2016 Pensions Section:

• The "Feel Free" Retirement Spending Strategy. Evan Inglis "…most people would rather spend their money at a safe level than they would spend their time on analyzing their situation in order to be confident in spending a bit more…retirees spend much less time thinking about their finances than pre-retirees do and that most retirees do little planning but a lot of adapting to circumstances" 

• Linking Behavioral Economics to Retirement Income Planning: Designing and Communicating Retirement Plans for “Humans” Steve Vernon, Stanford.  "Many middle income retirees don’t have access to financial professionals who are skilled in retirement income generation and who aren’t conflicted by the way they’re compensated." 

• A Portfolio Approach to Retirement Income Security, Steve Vernon, research scholar at the Stanford Center on Longevity. " things get more complicated when workers retire and need to use their savings to generate income for the rest of their lives. To help retirees with these new goals, plan sponsors, financial institutions and advisers can apply portfolio thinking by diversifying retirees’ sources of income among different types of retirement income generators (RIGs)." 

• Using Sound Actuarial Principles to Better Manage RetirementFinances, Ken Steiner. "In this article I make a case for why I believe the actuarial profession should take a more active role in helping retirees and near retirees develop reasonable spending budgets." 

The Advantages Of Monte Carlo Simulations, Wade Pfau 

The (Not So Clear) Advantages of Monte Carlo Simulation, Me commenting on the link above.  

NYT on the growing respectability of reverse mortgages.  

Fiduciary Financial Advice to Retirement Savers: Don'tOverlook the Prudent Investor Rule,  SSRN, Northwestern Law, Harvard Law. "This essay calls attention to the regulatory imposition of the prudent investor rule on financial advisers to retirement savers. The essay also canvasses the basic tenets of the prudent investor rule, highlighting its nature as principles-based rather than prescriptive, and the customary role of an investment policy statement in compliance by professional fiduciaries."  

Optimizing Retirement Income by Combining Actuarial Scienceand Investments. Pfau.  

5 Ways to Avoid Outliving Your Retirement Savings, Money.  "Whether you’re still building a nest egg or have already begun drawing on it, here are five ways to reduce the odds of your savings running out."