Lifetime Income Series: Professor Wade Pfau on a Safer Approach to Retirement Income Planning

Jim welcomes back Wade Pfau Ph.D. CFA, Professor of Retirement Income at The American College. Professor Pfau covers a number of topics in retirement income planning, including that a “wealth target” is not necessarily an effective tool, as there are so many variables that can affect that target, such as fluctuations in interest rates. He also discusses ways to manage sequence risk in retirement, from the 4% rule to constructing a less volatile portfolio, to having a buffer outside your portfolio, to having flexibility in your spending patterns. Professor Pfau also looks at annuities, and how one particular type, an income annuity, can provide a great benefit against longevity risk for retirees.

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