Tag Archives: Retirement

Retirement Planning: Nobel Prize Economist William Sharpe Offers Free E-Book For Retirees

Feom a Barron’s online interview article:

William Sharpe Nobel Prize Winning EconomistRight now, you tend to have investment advisors for retirees, and insurance advisors or salespersons for retirees, and it’s fairly rare to go to somebody who can sell you annuities or invest your money and has no financial incentive to tilt one way or the other. Ultimately, what I’d like to see are people who have knowledge of both annuities and investments, and who are compensated in a way that doesn’t influence the decision.

The idea is that you segment your money. It’s similar to using “buckets” but with a time component. A retiree might have a box for 2020 and a box for 2021, and 2022, etc.

Retirement Income Analysis by William SharpeNobel Prize–winning economist William Sharpe has spent most of his career thinking about risk. He’s behind the Capital Asset Pricing Model for gauging systemic risk and the eponymous Sharpe ratio, which captures risk-adjusted return.

A few decades ago, Sharpe turned his attention to what may be the biggest risk of all for most Americans—running out of money in retirement. The professor of finance, emeritus, at Stanford University’s Graduate School of Business created a computer program that eventually covered 100,000 retirement-income scenarios based on different combinations of life spans and investment returns for a retired couple. Sharpe has made this program available in a free ebook, Retirement Income Scenario Matrices.

To read more: https://www.barrons.com/articles/william-sharpe-how-to-secure-lasting-retirement-income-51573837934

Retirement: Older Adults Upgrade Their Skills To Become Entrepreneurs (PBS Newshour Podcast)

Seniors are EntrepreneursEntrepreneurs are often imagined as twenty-something recent college dropouts. But in fact, people ages 45 to 64 start businesses at higher rates than do their younger peers — and plenty of seniors are in startup mode, too. Economics correspondent Paul Solman visits a New York City center that helps older adults upgrade their technology skills and realize their entrepreneurial dreams.

Boomers Retirement: Three Of The Top Hidden Costs Facing Retirees

From a Wall Street Journal online article:

“many people are poorly prepared for unexpected expenses” in later life, the study notes. Even worse, about one in five retirees (19%) and one in four retired widows (24%) experienced four or more shocks during retirement. The good news: Many older adults who get hit with stealth expenses appear to bounce back.

• Replacement costs. Big-ticket buys—a new furnace, updated appliances, a fresh coat of house paint—can put sizable dents in your nest egg. But most people don’t consider that these outlays can follow them into later life or that such costs can continue to add up for decades. A contributing factor: Many retirees underestimate their life expectancy.

• Relatives in need. This can hit you from two sides: aging parents feeling a financial pinch and younger family members who suddenly find themselves in a bind. With the latter, perhaps it can be an adult child who gets laid off or divorced, or a grandchild who needs help with tuition.

Costs in Retirement• Required distributions. Most people know that, after reaching age 70½, they must begin withdrawing funds from tax-deferred accounts (like IRAs). What they fail to understand are the ripple effects from these payouts. Required minimum distributions can, first, push you into a higher tax bracket and, second, translate into increased Medicare Part B premiums (which are tied to annual income).

To read more: https://www.wsj.com/articles/the-expenses-people-often-forget-when-they-plan-for-retirement-11571321423

Retirement Podcasts: President Of Prudential Financial Talks About Retirement Savings In U.S.

Industry Focus - Motley FoolPhil Waldeck, president of Prudential (NYSE: PRU) retirement talks with host Jason Moser and Robert Brokamp, CFP about the state of retirement in the United States and more.

Website: https://www.fool.com/podcasts/industry-focus/2019-09-09-financials-prudentials-head-of-and/

Boomers Hobbies: 75-Year Old Dave Hinz Of Michigan Spent Ten Years Building His 1936 A.J. Speciale

From a Wall Street Journal article by A.J. Baime:

Dave Hinz 1936 A.J. Speciale Interior Photo by Erin Kirkland for the Wall Street JournalI built a frame out of ash wood. Then I hand-formed and welded body panels onto the frame. I re-engineered the brakes, the steering and the clutch system to fit properly, and I hand-formed the grille out of aluminum. The seats I built out of plywood, foam and vinyl that looks like leather. When I started, I had no idea how to do any of this.

Dave Hinz, 75, a retired former software company co-owner from Harbor Springs, Mich., on what he calls his homemade 1936 A.J. Speciale, as told to A.J. Baime.

After I retired in 2005, I found a photo of a beautiful Bugatti online. I made the mistake of telling my friends that I was going to build a car just like it. I had no experience in metal forming. I knew nothing about car mechanics. But I had made this statement, and I was the butt of so many jokes, I had to try.

To read more click on the following link: https://www.wsj.com/articles/its-not-an-alfa-romeo-or-a-jaguarits-a-tribute-to-both-11566914306

Aging Well: Harvard Magazine Highlights Six “Exellent Predictors” To Flourish In Retired Life

From a HarvardMagazine.com online archive article:

How To Age Well - Harvard MagazineSix factors measured by age 50 were excellent predictors of those who would be in the “happy-well” group–the top quartile of the Harvard men–at age 80: a stable marriage, a mature adaptive style, no smoking, little use of alcohol, regular exercise, and maintenance of normal weight. At age 50, 106 of the men had five or six of these factors going for them, and at 80, half of this group were among the happy-well. Only eight fell into the “sad-sick” category, the bottom quarter of life outcomes. In contrast, of 66 men who had only one to three factors at age 50, not a single one was rated happy-well at 80. In addition, men with three or fewer factors, though still in good physical health at 50, were three times as likely to be dead 30 years later as those with four or more.

The book examines the lives of a group of Harvard men who have been studied from their college years all the way to retirement and, in some cases, death. Its cornerstone is the Grant Study, a longitudinal investigation conceived in 1937 and launched at Harvard in 1939. With funding from dime-store magnate W. T. Grant, researchers signed up 268 members of the classes of 1941 through 1944, in their sophomore years, for an in-depth, lifelong study of “normal” adult development.

To read more click on the following link: https://harvardmagazine.com/2019/08/the-talent-for-aging-well

Retirement Videos: Panel Discusses Topic “Is Retirement Extinct?”

The increase in longevity is disrupting the 20th-century retirement model. Our longer lifespans, though a blessing in many respects, has been a shock to the collective system. While Social Security and Medicare provide cushions, too few people have adequate savings and investment to support lifelong needs. The shift away from pensions and defined benefit plans has exacerbated insecurity. People need to work and earn longer to survive and thrive in a world of rapid change. As we come to grips with the opportunities and challenges of longer lives, what will 21st-century retirement look like? What policies and practices should be implemented to enhance wealth, health, and engagement for a better future?