Pulse of the Parties
What's really going on in D.C.
Measuring Investment Management Culture: a key to success
A useful statistical tool for pension funds and their money managers
Boomers Behaving Badly: A Better Solution to the Money-Death Problem (January 2012)
The biggest single financial worry for American workers may be “money death,” the fear that they will run out of money during retirement. Americans within 10 years of retirement number 60 million and are forecast to grow to more than 75 million within the next decade. Investment strategies for retirement rooted in conventional wisdom or extrapolated from successful past approaches may no longer be ideal for healthy and wealthy Boomers. Supported by a proprietary modeling tool—the Brandes Retirement Simulator—we are able to estimate wealth outcomes based on personalized financial and lifestyle inputs. The results suggest that the baby-boomer generation should consider contrarian strategies, including equities and fixed income assets with higher-return potential to address the “money death” problem.
Boomers Behaving Badly
Brandes Retirement Simulator
Brandes Investment Partners has developed the Brandes Retirement Simulator, an interactive program that allows you to model your future income, expenses and investment strategy to simulate possible financial outcomes over your lifetime, including both investment and longevity insurance assumptions. Using Monte Carlo modeling, the Simulator will show you a range of good, median and bad outcomes based on your customized inputs and assumptions. It’s free and is available on their website.
New Treasury Rules Ease 401(k) Annuity Purchase
By MARY WILLIAMS WALSH
Published: February 2, 2012
It is one of the biggest conundrums of an aging society: Americans have salted away $11 trillion in retirement plans, yet millions still risk running out of money in old age.
On Thursday the government said it had some new tools to deal with the problem. The Treasury issued several new regulations intended to make it easier, and maybe cheaper, for middle-class people in retirement to transfer the money they accumulated in their 401(k)s into an annuity that would guarantee monthly payments until they die.