Doctor Wade Pfau returns to the podcast to discuss his recently released research paper.
Research Paper Abstract:There remains a rift in the financial services profession about the best approach for building a retirement income plan. Some advisors prefer to pursue the risk/reward possibilities of an equity portfolio and others prefer the contractual guarantees of insurance products. However, for retirement income, one must step away from the notion that either investments or insurance alone will best serve retirees. The risks to and concerns of retirees are many and diverse. Will a retired couple be able to maintain a lifestyle to which they are accustomed? How long will they live, and will they have sufficient income until the death of the survivor? Will they have sufficient liquidity for unexpected contingencies, and will they be able to leave a legacy for subsequent generations?Investment volatility, inflation, unforeseen spending needs andcognitive decline are risks that a retirem