Podcast appearances and mentions of moshe milevsky

In this episode of More Than Commas, we tackle the Annuity Puzzle—why retirees often ignore one of the most recommended financial tools: lifetime income annuities. Cory discusses expert insights from economists like Moshe Milevsky, William Sharpe, and Olivia Mitchell, uncovering the behavioral biases, marketing flaws, and misconceptions that keep people from embracing annuities. We explore their benefits, including guaranteed income and longevity protection, while addressing concerns about fees, fairness, and industry reputation. Tune in to rethink annuities as an essential retirement income insurance—because securing your future shouldn't be left to chance.   --   This Material is Intended for General Public Use. By providing this material, we are not undertaking to provide investment advice for any specific individual or situation or to otherwise act in a fiduciary capacity. Please contact one of our financial professionals for guidance and information specific to your individual situation. Sound Financial LLC dba Sound Financial Group is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance. Insurance products and services are offered and sold through Sound Financial LLC dba Sound Financial Group and individually licensed and appointed agents in all appropriate jurisdictions. This podcast is meant for general informational purposes and is not to be construed as tax, legal, or investment advice. You should consult a financial professional regarding your individual situation. Guest speakers are not affiliated with Sound Financial LLC dba Sound Financial Group unless otherwise stated, and their opinions are their own. Opinions, estimates, forecasts, and statements of financial market trends are based on current market conditions and are subject to change without notice. Past performance is not a guarantee of future results.  

The average Canadian wastes $22,000 after tax during their life for every $100,000 of their mortgage and takes 38 months longer to pay it off, according to a study by Moshe Milevsky. This is because of taking 5-year fixed mortgages instead of variable. They are marketed as being safe and a good protection against a sharp rise in interest rates.  The reality, though, is that they are nearly always a huge waste of money, because the interest rate is nearly always higher and you lose your negotiating power for five long years. From 1975-2019, 1-year fixed mortgages saved money 100% of the time. 5-year fixed will probably save money for 5 years starting 2020-22, but it may be decades until next time. That is why we call it the “5-Year Fixed Mortgage Trap”. Listen to my latest podcast episode to find out: Why people take 5-year mortgages. What you should do instead. Why being aware of your negotiating power is key.  

Moshe Milevsky is a professor of finance at York University in Canada. He's an author and leading authority on the intersection of wealth management, financial mathematics, and insurance.Professor Milevsky talks about the fundamental shifts in retirement planning and why it's no longer simply a math problem to be solved, how he feels about the 4% withdrawal strategy for retirement income, and why he doesn't like the idea of choosing a retirement date. Go to Moshe Milevsky's website.....The Allianz consumer study referenced in this episode is the Allianz 2023 Annual Retirement Study, an online survey conducted in February and March 2023 with a nationally representative sample of 1,000 individuals age 25+ in the contiguous U.S. with an annual household income of $50k+ (single) / $75k+ (married/partnered) OR investable assets of $150k+.Allianz Life Insurance Company of North America (Allianz) and Allianz Life Financial Services LLC are not affiliated with our podcast guest. The guest's website is being provided as a service to you. Opinions expressed by the podcast guests are not necessarily those of Allianz or its affiliates. Please note that the information and opinions are provided by third parties and sources believed to be reliable, but accuracy and completeness cannot be guaranteed. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation.Allianz Life Insurance Company of North America has been keeping its promises since 1896 by helping Americans achieve their retirement income and protection goals with a variety of annuity and life insurance products.Allianz Life Insurance Company of North America (Allianz) does not provide financial planning services.This content is for general educational purposes only. It is not intended to provide fiduciary, tax, or legal advice and cannot be used to avoid tax penalties; nor is it intended to market, promote, or recommend any tax plan or arrangement. Allianz Life Insurance Company of North America, its affiliates, and their employees and representatives do not give legal or tax advice or advice related to Social Security or Medicare. Customers are encouraged to consult with their own legal, tax, and financial professionals for specific advice or product recommendations, or the Social Security Administration (SSA) office for their particular situation.Diversification does not ensure a profit or protect against loss.Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America. Registered index-linked annuity (RILA) guarantees do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions.Products are issued by Allianz Life Insurance Company of North America. Registered index-linked annuities (RILAs) are distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. 800.542.5427 www.allianzlife.comThis content does not apply in the state of New York.For financial professional use only – not for use with the public.

In case you missed it, I have decided to circle back to one of my Fun With Annuities episodes that just cannot be missed. This one has annuity gold, and it is definitely a must-listen.  In this episode, The Annuity Man and Moshe Milevsky discuss:  The problem with annuities  What's a tontine?  How income increases with tontines  The gap between healthspan and lifespan   Key Takeaways:  The point of annuities is to generate predictable income even when you can no longer make decisions yourself due to cognitive decline. That's why agents have to make sure the clients understand and continue to understand what they are buying and what contractual guarantees they have in place.  A tontine is one of the many strategies people use to finance themselves in retirement in which the longest-living people get the most income while the people who didn't live a long time get a smaller amount of income. Tontines increase the income for all living people involved as time passes because the same income amount is being split within a group that gets smaller as members pass away. The mortality rate becomes a real interest rate - this is most interesting in the current inflationary times.  Money alone doesn't solve your problems; just throwing money at a problem won't make it go away. You need to do something with it to solve your problems, and one of the biggest problems in aging is the gap between health span and lifespan.    "When you have a product that is meant to help people that are eventually going to cognitively decline, there's a higher burden of care there because you got to make sure that they understand what they're buying and they continue to understand what they're buying. " —  Moshe Milevsky.    Connect with Moshe Milevsky: Website: https://moshemilevsky.com/  Twitter: https://twitter.com/RetirementQuant    Connect with The Annuity Man:  Website: http://theannuityman.com/  Email: Stan@TheAnnuityMan.com  Book: Owner's Manuals: https://www.stantheannuityman.com/how-do-annuities-work YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g  Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator! 

The emotions and questions seem to come from everywhere and out of nowhere as you inevitability approach retirement. Even the most prepared will ask, second guess, and then ask again: Do I have enough to retire? How do I ensure it lasts?   Leading retirement researcher Moshe Milevsky addressed this in a paper "How Long Will a Nest Egg Last." In this episode, Tyler Emrick, CFA®, CFP®, takes a different approach to try and answer that critical question. Hear Tyler give actionable steps in plain English that you can help build confidence and clarity around your retirement nest egg.    Here's some of what we discuss in this episode: Breaking down the equation and identifying areas we agree and disagree.   How many years can you make withdrawals before running out of money? What are the variables you know and don't know and how do you account for both? The importance of a diversified portfolio when trying to generate a rate of return each year. Rarely is there a single product or investment that meets your needs for all of retirement.   Have questions? Need help making sure your investments and retirement plan are on track? Click to schedule a free 15-minute call with one of True Wealth's CFP® Professionals. http://bit.ly/calltruewealth 

Desmond Brown & Moshe Milevsky 26.11.22. OTM by Asif Khan ON THE MARKET

Murder. Intrigue. And a financial product that bets on the death of people you don't know. Tontines! Welcome to the Insurance vs History Podcast! In this episode, I dig into the rise and fall of the tontine, a unique life insurance product that includes a mortality lottery. How did a financial product build bridges and real estate, fund wars, and even contribute to the French revolution? I'm talking Kings, Insurance Barons, and estimating who would live longest. What could be more exciting? Sources and Links: Books: com: King William's Tontine: Why the Retirement Annuity of the Future Should Resemble its Past (Cambridge Studies in Comparative Politics (Hardcover)): 9781107076129: Milevsky, Moshe A.: Books Milevsky has a nice history of tontines in here, and then a discussion of the math and how he thinks a tontine could work. If you're an actuary, you probably will understand the math, but laypeople likely will not. com: The 100-Year Life: Living and Working in an Age of Longevity eBook : Gratton, Lynda, Scott, Andrew J.: Kindle Store The book that prompted the interest in tontines in Japan. Betting On Lives: The Culture of Life Insurance in England, 1695-1775 (Politics, Culture and Society in Early Modern Britain): Clark, Geoffrey: 9780719056758: Amazon.com: Books Articles: Japan's Aging Population Breathes New Life Into a Centuries-Old Investment Idea - WSJ (behind a paywall, sorry) The Tontine Principle - Historic UK (historic-uk.com) Short overview of using tontines for smaller public works projects or private projects Tontine Thinking - The Actuary Magazine Article by Moshe Milevsky if you don't want to read the book It's sleazy, it's totally illegal, and yet it could become the future of retirement - The Washington Post Well, I wouldn't go exactly that far, but okay, Washington Post, hit that clickbait. The Tontine Coffee House (narratively.com) Alexander Hamilton's Tontine Proposal on JSTOR by Robert M. Jennings, Donald F. Swanson and Andrew P. Trout Tontine Insurance and the Armstrong Investigation: A Case of Stifled Innovation, 1868-1905 on JSTOR by Roger L. Ransom and Richard Sutch Music Credits: Boulangerie by Jeremy Sherman, courtesy of NeoSounds: Boulangerie, LynneMusic | NeoSounds music library Contact Me: insurancevshistory@gmail.com Website: https://insurancevshistory.libsyn.com Contact me!  Twitter: @insurancevshist Instagram: @ insurancevshistory Facebook:  Insurance vs History | Facebook  

Barry Gordon, Head of Canadian Retail Asset Management, at Guardian Capital LP, and Dr. Moshe A. Milevsky, Ph.D., Professor at Schulich School of Business at York University join us to discuss how they went about solving what Nobel Laureate, William F. Sharpe, has described at the "nastiest, hardest problem in finance."Guardian Capital made quite a splash recently, announcing their partnership with Dr. Moshe Milevsky to develop a suite of retirement decumulation solutions, that are now available as securities for investment advisors to utilize, to address the quintessential "Retirement Dilemma," which combine compelling income and growth strategies of targeted-yield and return asset decumulation, in what is definitively described as a 'Modern Tontine.'We are in the midst of what appears to be an historical regime change, following 40 years of declining government bond yields, into new regime that won't be as friendly to investors as the last, with historically very low, though rising rates and inflationary volatility. Investors are facing what may be a very trying period for retirees, or those in pre-retirement, from a sequence of returns risk and market volatility perspective.Highlights:What was the genesis of GuardPath Longevity Solutions – when did you first realize this project needed to be brought to life?How does the GuardPath Suite address these problems?What is a Tontine? What is the origin of the Tontine?The science of mortality credits or survivorship credits (monetizing mortality)Why should the insurance industry have a monopoly on mortality credits?How does the decumulation strategy work? What can investors expect from the Managed Decumulation strategy?Can the two main components of the Guardpath suite be used separately, or are they only intended to be implemented together?how do you operationalize the complete modern tontine strategy?What can the estates of investors/retirees expect from GuardPath in the event of death?What happens if you live past the 20 year term?Thank you for watching and listening.For more on GuardPath™ Longevity Solutions, visit guardpath.ca

In this episode, The Annuity Man and GUEST discuss:  Why annuities get a bad rep  What's a tontine?  Beating inflation  Planning for health decline    Key Takeaways:  Annuities are often complicated, and they are typically sold to a group of vulnerable people. That could be a recipe for disaster. A tontine was one of the many ways that people used to finance themselves in retirement; it was a scheme in which the longest living people got the most amount of people, and the people that didn't live a long time got a small amount of income - it was a type of annuity.  With a tontine scheme, the denominator keeps getting smaller as time goes by while the numerator stays the same - meaning the same amount of money is being split between fewer people. Mortality becomes a real interest rate. People don't care much about this because inflation wasn't that much of a hot topic, but nowadays, people should look into it.  There's a big difference between health span and life span, but they can have a short gap in between. Long-term health care is important because it allows you to use more of your lifetime income for things you like rather than split them between things you like and things you need.    "You have a product that's meant to help people that are eventually going to cognitively decline and help them deal with the finances; there's a higher burden of care there because you gotta make sure that they understand what they're buying, they continue to understand what they're buying and in many cases, annuities are quite complicated." —  Moshe Milevsky.   Connect with Moshe Milevsky: Website: https://moshemilevsky.com/  Twitter: https://twitter.com/RetirementQuant    Connect with The Annuity Man:  Website: http://theannuityman.com/  Email: Stan@TheAnnuityMan.com  Book: Owner's Manuals: https://www.stantheannuityman.com/how-do-annuities-work YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g  Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!

Today's episode is the first that takes a new format we are piloting, where we compile clips from the most valuable conversations we have had in different episodes on a given topic. To kick it all off we will be devoting this episode to inflation-adjusted retirement spending and the nuances of the 4% rule. We start off with a clip from our conversation with Bill Bengen, creator of the 4% rule, where he explains the concept. From there, we pull up an excerpt from an interview with Wade Pfau, hearing him weigh in on how this rule only works in the context of the US and Canada. Next up, Fred Vetesse talks about the changes in stock and bond yields and how they further problematize the 4% rule. After that, Professor Moshe Molevsky makes the case for flexible spending, followed by Michale Kitces with his favourite variable spending rules. We grab a segment from our chat with Scott Rieckens where he argues that the 4% rule should be seen as more of a guideline for making financial decisions than a rule. Bill Bengen's interview then features again as we hear his comments on the effects of small-cap value stocks and cyclically adjusted price-earnings on safe withdrawal rates. Tune in for this fascinating set of highlights, the main point of which is that the 4% rule should rather be used as a guideline for financial planning and that where actual spending is concerned, a flexible approach is more sensible.   Key Points From This Episode: Bill Bengen, creator of the 4% rule, explains how the concept relates to inflation-adjusted retirement spending. [0:03:50.8] Wade Pfau speaks about how the 4% rule doesn't work in an international context. [0:09:15.0] Fred Vettesse lays out the contrast between today and the period Bill studied. [0:12:31.1] The importance of having flexibility in retirement spending with Moshe Milevsky. [0:14:51.8] Variable spending rules with Michael Kitces; ratcheting, guardrails, and more. [0:19:27.3] Scott Rieckens on the 4% rule as a tool for making financial decisions. [0:32:33.8] Bill Bengen comments on the problems that have been found with the 4% rule. [0:38:35.7] The effects of small-cap value stocks on the safe withdrawal rate with Bill Bengen. [0:42:52.8] The effects of cyclically adjusted price-earnings on safe withdrawal rates with Bill Bengen. [0:47:20.6] Final thoughts on the 4% rule with Ben and Cameron. [0:51:37.8]  

A reminder that we are living in a new age and we need to think differently about how we plan for our years of decumulation. This discussion is equally relevant for financial advisors as well as consumers of financial products. From Not-Retirement-Planning to Annuities and Tontines a wide-ranging discussion about the DECUMULATION phase of life.  Biologic Age, what's-inflation-anyway? and what the world of decumulation is today vs say - the 1960's and 70's.  

For this episode of the Rational Reminder Podcast, we review our year by playing back and discussing a collection of the most impactful moments of the show from 2020. This has been a drastic year filled with many learnings for us all, and in today’s show, we cover topics of happiness, decision making, dealing with uncertainty, and the connection that financial planning and investing have to all of this. We collect some amazing gems of wisdom from guests like Annie Duke, Ken French, Michael Kitces, Patricia Lovett-Reid, and a whole lot more, whittling down an original list of over one hundred of this year’s finest moments to a collection of just 45. The show starts out exploring themes of the connection between wealth and happiness, keeping cool in stressful times, and the transformations that crises kickstart. From there, we talk about the importance of models and systems for informing investing and behaviour in general, and the idea that unexpected outcomes swamp expected ones in the short term. We also look at what market history has to say about staying in your seat rather than market timing when things look bleak. Next up, we cover themes of the value of a flexible approach to retirement spending, how families should think about financial planning, whether 60/40 portfolios are dead, and why stock market returns in the U.S. are higher under Democratic presidents. Moving onto the subject of decision making, we explore some of our guests’ thoughts on evaluating decisions, outcomes bias and the role of luck, and more. We also consider the topic of human capital, how it relates to investing, and what we should really be spending our time on. The subject of the convergence of brokerage firms and financial advisors then leads to a great exploration of the role of financial advisors. We wrap up with some extra special perspectives on how optimal financial planning should be geared around the person that you want to be rather than maximizing wealth for the sake of it. Tune in today for an amazing overview of the year and to hear all the ways we have changed and grown thanks to our incredible guests.   Key Points From This Episode: Looking back on the year: Pandemic adjustments and how this podcast has grown. [0:00:15] Shoutouts and Cameron’s method of putting past clips together for today’s show. [0:06:20] Brian Portnoy and Andrew Hallam on wealth and happiness. [0:09:15] Dealing with stress and volatility with Dr. Moira Somers and Dave Goetsch. [0:13:48] Craig Alexander on market volatility and Jim Stanford on crisis and revolution. [0:18:27] Dave Goetsch and Greg Zuckerman on the benefit of models and systems. [0:23:11] The role of unexpected returns in outcomes and how to deal with this. [0:27:04] Small and value stocks relative to the market with Dr. William Bernstein. [0:33:09] Ken French and Cliff Asness on whether ‘this time is different’. [0:35:29] Enduring tracking error with Cliff Asness and Andrew Hallam. [0:38:37] Cliff Asness on whether 60/40 is dead and Lubos Pastor on why stock market returns in the US are higher under Democratic presidents. [0:41:00] Changing your risk portfolio when the market is dropping with Ken French. [0:45:25] Market timing versus awareness of investing history with Mark Hebner and Dr. Bernstein. [0:48:20] Wade Pfau on how expected returns fit into financial planning and the ‘safety first’ approach. [0:52:15] Moshe Milevsky on retirement spending and Pattie Lovett Reid on addressing one’s financial situation. [0:56:13] Annie Duke, Ken French, and Victor Ricciardi on making and evaluating decisions. [1:00:05] Greg Zuckerman on the role of luck in decisions leading to positive outcomes. [1:08:15] Forecasting as a way of knowing the range of outcomes with Craig Alexander. [1:11:15] Moshe Milevsky and Dr. Bernstein on human capital, financial planning, investing and asset allocation. [1:13:34] Josh Brown on what to spend your time on and Fred Vettesse on when to start saving. [01:16:28] Michael Kitces on the convergence of brokerage firms and financial advisors. [01:19:20] Dennis Mosey Williams and Ken French on financial advice for gaining wealth and being content. [01:20:57] Allison Schrager on the role of financial advisors for mitigating systematic risk. [01:25:00] Mark Hebner on the role of financial advisors for explaining a range of outcomes. [01:26:38] Scott Rieckens and Dennis Mosey Williams on what finding happiness means. [01:30:03]

Professor Moshe A. Milevsky, a finance professor at the Schulich School of Business and arguably the godfather of modern retirement planning theory joins us today to discuss how to really understand retirement assumptions. Spoiler alert - you may want to brush up on your coding capability. Connect with Moshe at https://moshemilevsky.com/ Connect with That Annuity Show at https://twitter.com/ThatAnnuityShow, https://www.facebook.com/thatannuityshow, Visit our website at https://thatannuityshow.com. Visit Nassau Financial Group on the web at Connect with Ramsey Smith on https://www.linkedin.com/in/ramseydsmith or Visit https://alex.fyi on the web. This podcast is intended for general informational purposes only and is not a solicitation of any insurance product. The discussion is not meant to provide any legal, tax, or investment advice with respect to the purchase of an insurance product. A comprehensive evaluation of a consumer’s needs and financial situation should always occur in order to help determine if an insurance product may be appropriate for each unique situation.    

There are seven equations that, if understood, will put you in the best possible position to tackle your retirement plan. Today we speak with business professor Moshe Milevsky about these equations, which he’s written extensively about in his best-selling book, The 7 Most Important Equations for Your Retirement. After introducing Moshe, we dive straight into the first equation that maps out the longevity of your money. Following this, we talk about determining how long you will live by comparing your biological and chronological ages. Regarding the third equation, Moshe provides his insights into evaluating the usefulness of an annuity plan, and at what age they become relevant to you. We then chat about what annuity plans are offered in Canada versus elsewhere and why people don’t want to buy annuities during a bull market. Despite the popularity of the ‘4% spending rule’ — which we also unpack — Moshe discusses the importance of being adaptable with your retirement spending rates. Reflecting on the key theme of another of his books, we explore the question of whether people are stocks or bonds. Moshe shares some investing advice for younger listeners and touches on what the ideal mix of stocks, bonds, and human capital looks like. For the last equation, we look into the impact of probability frameworks and why financial advisors need to understand the math behind retirement plan probabilities to make meaningful recommendations. Throughout our discussion, Moshe presents coherent answers and pragmatic advice. Tune in and learn more about the equations needed to build the best possible retirement plan.   Key Points From This Episode: Introducing today’s guest, Professor Moshe Milevsky, and his work. [0:0:15] Exploring Moshe’s book, The 7 Most Important Equations for Your Retirement. [0:02:57] Mapping the longevity of your money according to Moshe’s ‘Fibonacci Equation.’ [0:03:25] Determining how long you will live when planning your retirement funds. [0:04:37] Understanding the difference between your biological and chronological age. [0:06:22] A challenge to our retirement system; it’s based on chronological and not biological age. [0:08:45] Introducing the concept of annuities and how they can be valued. [0:10:03] Striking a balance with your annuity plan and answering — “How much is too much?” [0:11:42] Moshe shares his thoughts on how much insurance companies factor in biological age. [0:14:04] Ideas on using your biological age to your advantage. [0:15:35] Why you probably shouldn’t even consider getting an annuity until you’re 60. [0:17:16] Canadian annuity plans versus elsewhere; “The shelf feels empty here.” [0:18:30] The correlation between being in a bull market and people not wanting annuities. [0:20:35] Establishing your ideal retirement spending rates — flexibility is important. [0:25:25] Unpacking the ‘4% rule’ and why it’s a ridiculous spending framework. [0:28:04] What your mix between stocks, bonds, and human capital should be. [0:31:08] Answering the question — are humans stocks or are they bonds? [0:33:28] Leveraging youth to get quicker exposure and equity. [0:36:03] Life insurance and measuring your financial legacy. [0:39:10] Details on the life of Andrey Kolmogorov and his effect on understanding probability. [0:40:54] How important probability frameworks and analysis are to retirement planning. [0:43:17] The impact of low-cost index funds on retirement income planning. [0:45:18] Keeping finance students engaged in the industry. [0:47:24] How Moshe defines success, his other research interests, and reflections on the success of his books. [0:49:53]

Our guest on the podcast today is renowned retirement researcher Moshe Milevsky, who has conducted research on a broad range of topics, including pensions, annuities, investment strategies for people approaching retirement, and asset allocation over the human lifecycle. A prolific writer and researcher, Milevsky is also the author of several books, including Are You a Stock or a Bond?, The 7 Most Important Equations for Your Retirement, and The Calculus of Retirement Income. His recent books include King William's Tontine: Why the Retirement Annuity of the Future Should Resemble Its Past and The Day the King Defaulted: Financial Lessons from the Stop of the Exchequer in 1672. He's served as a professor of finance at the Schulich School of Business at York University for the past 25 years. He received his bachelor's degree in physics at Yeshiva University, his master's degree in mathematics and statistics at York University, and his doctorate in finance at York University's Schulich School of Business.BackgroundMoshe Milevsky's home page Milevsky's Twitter account @retirementquantMilevsky's CV Moshe Milevsky Books Are You a Stock or a Bond? The 7 Most Important Equations for Your Retirement The Calculus of Retirement IncomeKing William's Tontine: Why the Retirement Annuity of the Future Should Resemble Its PastThe Day the King Defaulted: Financial Lessons from the Stop of the Exchequer in 1672Human CapitalRoger Ibbotson bio "The U.S. Labor Market During and After the Great Recession: Continuities and Transformations," by Arne Kalleberg. The Russell Sage Foundation Journal of the Social Sciences, Vol. 3, No. 3, April 2017. "No Portfolio is an Island," by David Blanchett and Phillip Straehl, Financial Analysts Journal, Vol. 71, issue 3, May/June 2015. Longevity Risk"Forget Your Real Age: Plan Your Retirement Around Your 'Biological Age'," by Lewis Braham, Barron's, Jan. 27, 2019."Retirement Spending and Biological Age," by Huaxiong Huang, Moshe Milevsky, and T.S. Salisbury. Journal of Economic Dynamics & Control, September 2017."The Utility Value of Longevity Risk Pooling: Analytic Insights," by Huaxiong Huang and Moshe Milevsky, North American Actuarial Journal, Feb. 8, 2019.The SECURE Act Annuities and Tontines"Valuation and Hedging of the Ruin-Contingent Life Annuity (Rcla)," by Huaxiong Huang, Moshe Milevsky, and T.S. Salisbury, Journal of Risk and Insurance, Vol. 81, No. 2, May 2014. "Pros and Cons of 2 Key Annuity Types," by Christine Benz and David Blanchett, Morningstar.com, Oct. 18, 2014."Could a Tontine Be Superior to Today's Lifetime Annuity Income Products?" by Michael Kitces, Nerd's Eye View, Feb. 3, 2016."Estimating the True Cost of Retirement," by David Blanchett, Morningstar Investment Management, Nov. 5, 2013.Retirement System and PlanningOlivia Mitchell CV

Save, save, save – that's the retirement mantra. But then do you know how to draw down from your pot of money so that you can enjoy Life Two? Relatively little attention has been devoted to this logical conclusion, also known as decumulation. When you have no idea how long you're going to live, how do you determine the sustainable rate at which to withdraw your money? We sit down with one of the world's pioneers in this field, Moshe Milevsky (finance professor at York University’s Schulich School of Business), describing the sensible and the less than sensible practices he has encountered. Also, you don't have to do this alone – later in the show, we discuss what to say with financial professionals and how to share your Life Two plans with those close to you. This interview was recorded in the summer of 2019.

It’s not unreasonable to assume that a desirable retirement equates to having the financial freedom to meet one's lifestyle and personal goals. The more efficient a person is with their assets, the higher the likelihood of this, which is why sensible retirement income planning is so necessary. Today’s guest is Wade Pfau and he is arguably one of the main thinkers in the retirement income space at present – a more readable Moshe Milevsky if you will. This podcast is usually devoted to high-level discussions about portfolio investment so it was an honour to have Wade join us and have a similar kind of conversation but rather about retirement income planning. Retirees face some unique risks when it comes to strategies for asset management, insurance, and investments, which means they require tailored strategies, and today Wade weighs in on some of the different approaches we see out there. The topic of probability versus safety-first approaches, and the potential wisdom in amalgamating the two as a means of preparing for retirement, crops up a lot in this discussion. Wade talks about the four L’s of the safety-first strategy, how it recommends building up a base of savings that act as an income to reach higher legacy in the long term. He suggests that people need to account for longevity risk more and argues for the efficiency of assuming that you will live until the average oldest age. That way you don’t end up throttling your lifestyle by saving unnecessarily during retirement. In our discussion, Wade also shares valuable insight into low interest rates versus expected returns, the ineffectiveness of the 4% rule, annuities and deferred annuities concerning mortality credits, and different types of buffer assets. Tune in for all this and much more on the topic of retirement planning from one of the greats in the field today! Key Points From This Episode: Notes on Wade Pfau, a leader in retirement income planning research. [0:00:43.0] Unique risks faced by retirees: longevity risk, sequence of returns risk, etc. [0:04:03.0] Retirement now vs 20 years ago: low interest rates and retirement length growth. [0:05:16] Safety-first retirement: build a floor and then spend more over the years. [0:06:31] Contractual protections (annuities) and probability vs safety-first approaches. [0:08:25] The four Ls of the safety-first method: longevity, lifestyle, legacy goals, liquidity. [0:12:18.0] Why to go for stocks/equities rather than stocks/bonds. [0:12:18.0] What the low interest rate environment means for expected returns. [0:16:57.0] The ineffectiveness of the 4% rule when applied internationally. [0:18:47] How people don’t properly account for longevity risk in retirement planning. [0:23:27] A way of covering basic needs so that higher legacy can be gained later on. [0:25:05.0] Strategies for buying annuities and deferred annuities at retirement. [0:28:57] How mortality credits from an annuity allow you to spend more in early retirement. [0:30:43] Mortality credits in relation to immediate and deferred annuities. [0:33:25] Better net incomes at the end of retirement through reverse mortgages. [0:34:36] Buffer assets such as reverse mortgages and permanent life insurance. [0:37:12] Safe savings rates in relation to historical data, bull markets, and mean reversion. [0:44:39] Asset accumulation conceptualised separately from the retirement plan. [0:44:39] Wade’s idea of a successful retirement: meeting safety-first goals. [0:48:39] And much more!

Welcome to another episode of the Rational Reminder Podcast! We have a fantastic guest joining us today to talk about annuities, or in more general terms, pensionization. Alexandra Macqueen is certified financial planner, who is also a financial author, editor, York University educator, consultant, and speaker. Alexandra co-wrote a book with Dr. Moshe Milevsky called Pensionize Your Nest Egg: How to Use Product Allocation to Create a Guaranteed Income for Life, an incredible resource on our topic today. In this episode, Alexandra talks about the important distinction between financial economics and financial planning, the former being much more rational and quantitative than the latter, which is largely based on folklores and rules of thumb. We discuss the concepts of retirement sustainability quotient (RSQ) and financial legacy value (FLV) and the impact they have on each other, before diving into explaining what annuities are and how they are meant to function. She also advises on the use of the GIC ladder, copycat annuities, and considerations for deferring your CPP. Don’t miss out on this insightful conversation!   Key Points from This Episode:  The distinction between financial economics and financial planning. [0:02:38.8] Product allocation and how it relates to pensionization. [0:04:15.8] The retirement sustainability quotient (RSQ) and what it measures. [0:06:46.3] How the RSQ affects your financial legacy value (FLV). [0:07:45.7] The idea of eliminating the probability of ruin from your portfolio. [0:09:39.6] What exactly is an annuity and how does it work? [0:10:15.3] The type of person and age group that annuities appeal to. [0:13:53.2] Why allocating to an annuity can allow you to spend more on your overall capital. [0:16:20.0] The problem with the folklore rules around appropriate withdrawal rates. [0:19:47.8] Suggestions for annuities for wealthy people under 50. [0:23:08.3] Why a GIC ladder is not a guaranteed stream of income. [0:26:04.9] Defining copycat annuities and their accompanying issues. [0:30:57.6] CPP and the impact of deferring it at retirement. [0:33:52.4] And much more!

In the retirement planning world, Moshe Milevsky, author, professor at Toronto’s York University, and consultant, is known as someone who takes some stances that go against the grain, to put it mildly. But it’s not just for the sake of being controversial. He thinks deeply about ways people can live their best lives when they retire. And he says the current system, not to mention conventional wisdom, actually makes it more difficult than it has to be to reach that goal… and he says the problem is getting worse.

York University Professor Moshe Milevsky, today’s foremost authority on retirement finance, discusses his new book, “Longevity Insurance for a Biological Age,” which provocatively asks: “What if the number of years planet earth has circled the sun with you as a passenger is the wrong metric?” Milevsky thinks chronological age is indeed a poor metric, which distorts one’s work strategy, asset allocation and everything else that in actuality keys off one’s biological age. He says a shift to biological thinking will one day make annuities as “legitimate” as life insurance now is. He recounts his rationale for purchasing a deferred income annuity and the strong negative reaction it induced in others, and explains the difference between investment and insurance, and why both are needed.

New research by Moshe Milevsky distinguishes between chronological age and biological age. Someone who has lived 60 years may be as fit as a 50-year-old or may be biologically equivalent to a 70-year-old. Thus, the implications for asset allocation and insurance coverage for two people both aged 60 may be very different.

With all this warm weather we're having, many people will be hitting the patio to enjoy a cold beverage. What will be in their glasses? You might be surprised to learn that Ontario cider is skyrocketing in popularity. Libby is joined by the owner and operator of Thornbury cider, Robert Lee, to talk about it.Plus , between historically low interest rates and declining workplace pensions, it's getting tougher and tougher to plan for a stable retirement. Investment expert Moshe Milevsky has a novel approach to retirement finances. He joins Libby to talk about how to pensionize your nest egg.

With all this warm weather we're having, many people will be hitting the patio to enjoy a cold beverage. What will be in their glasses? You might be surprised to learn that Ontario cider is skyrocketing in popularity. Libby is joined by the owner and operator of Thornbury cider, Robert Lee, to talk about it.Plus , between historically low interest rates and declining workplace pensions, it's getting tougher and tougher to plan for a stable retirement. Investment expert Moshe Milevsky has a novel approach to retirement finances. He joins Libby to talk about how to pensionize your nest egg. 

Prof. Moshe Milevsky says there is much to consider in deciding whether to buy or rent a home.

An analysis of a calculation (risquotient) that can indicate the degree of risk a client has for running out of savings during retirement. We learn how to recognize if a clients income is in jeopardy.

This discussion looks beyond traditional portfolio failure analysis to invent a warning signal for when a clients situation is likely to change. We learn how to determine if a clients sustainability number is stable by calculating a SORDEX. Most importantly this calculation tells us how often to meet with clients.

An analysis of how the change in equity allocation over time affects retirement portfolio sustainability. We learn that equity reduction throughout retirement may not be optimal and that standard deviation, not just the probability of portfolio ruin, should be considered as a measure of a clients risk.

An examination of expert thinking about the percentage of portfolio savings that can be spent annually during retirement without depleting the portfolio. We learn how much can be withdrawn for a sustainable withdrawal rate.