Sunday, February 10, 2013

Retirement Income Newsbeat #4

For anyone in the area, this week I will be visiting Portland and Seattle to speak at the following events:

Michael Kitces will be there too, and I'm looking forward to our roadtrip between the cities.

In Portland, I will deliver a new presentation about the two schools of retirement income. On this topic, Dan Moisand recently discussed the two schools in his RetireMentor column, and also Dirk Cotton wrote an excellent post differentiating between these two key ways to think about retirement income. 

In Seattle, I will be presenting about the efficient frontier for retirement income. Mark Miller recently discussed this article at Wealth Management.

While on the topic of RetireMentors, I also have a new entry there. It is new material as I provide a more detailed analysis of the 1966 retiree to explain about sequence of returns risk

David Blanchett at Morningstar has released a more sophisticated version of the article about the impact of low interest rates on safe withdrawal rates co-authored with me and Michael Finke. This second article is here. This article makes the same general point as the article I've discussed here before, though the methodology is more sophisticated and if you have an interest in time series econometrics, you might want to take a look. We use a more sophisticated model to account for mean reversion for interest rates and also the links between interest rates changes and the returns on stocks and bonds. 

David Blanchett is also representing us well with this interview he conducted with Christine Benz at Morningstar:

This issue about the impact of low interest rates on safe withdrawal rates has also been attracting attention at other sources:

- Michael Kitces wrote a great blog post about the issue of safe withdrawal rates in a low-yield world using an analogy of walking on the edge of a cliff.

- Anne Tergesen at MarketWatch wrote a piece about the newer Morningstar version. 

- Brent Hunsberger at The Oregonian wrote about the easier-to-follow original version of the article on low interest rates. 

- Darla Mercado at InvestmentNews also wrote about the Morningstar version. 

Though I haven't been posting much content recently, I have been working on some things behind the scenes, and there will be more to come. Please stay tuned...


  1. You seem to travel a LOT. Just curious, who pays for all that?

    1. Depending on the event, I can either use a designated university budget or research grant, or the event organizers reimburse the ticket. It's always economy class, and being a frugal type, I generally don't pay with personal funds.