Sunday, October 7, 2012

Do Retirees Really Need Bonds?

I recently talked with Jason Hull of Hull Financial Planning about my recent article on efficient frontiers for retirement income.

He subsequently wrote an excellent piece about it called "Do You Need Bonds in Retirement?" for his blog at U.S. News and World Report.

He also wrote another piece analyzing the annuity puzzle at his personal blog. Following a theme, it's called, "Maybe You Don't Need Bonds in Retirement!"

The technology he used for our interview is Google Hangout. It is very cool, and it prompted Bob Powell, whom you are mostly likely to know through his column at MarketWatch, to write a further introduction about the potential for that software. 

During the interview, I noticed that there was an option to show the computer desktop, and I am interested to further explore to see whether I might be able to use it to record videos in which I can switch back and forth between myself and a PowerPoint presentation. That would be very cool. 

Here is the full discussion I had with Jason Hull:


  1. Thanks Wade for sharing your insights into "Do Retirees Really Need Bonds?"

    How would you go about implementing your strategy for Single Premium Immediate Annuity (SPIA)?

    Let say Social Security pays me and my wife $38,000 and I need an additional $22,000 for my essential living expenses. I am 67 and my wife is 65.
    How do I go about buying SPIA? Buy now, do I ladder, wait to we get older, or wait for interest rates to go up, buy from different insurance companies, etc? Thanks

  2. Hi,

    Thanks for writing.

    Making an annuity ladder or waiting could make sense, but I haven't gotten to the point of being able to simulate it yet. So I'm afraid I cannot provide you an specific advice. About buying from different companies, that could be a good idea to keep the amount with each company under the limits for the state guarantee association in your state.

    Something you should pay attention to, if it isn't too late, is to optimize your Social Security decision. That could involve you and your wife starting benefit receipts at different times. Have you looked into that?

    Best wishes.

  3. Thanks Wade for taking the time to answer my questions. I started SS at age 66 after research and asking many questions. I know the number look a little better at age 70.
    Be interesting to simulate a annuity ladder and delay of purchase of SPIA until you get more mortality credits.
    Again thanks for helping some many people in retirement.