Monday, October 14, 2013

Reading List for Class on Accumulation and Distribution

I'm in the final stages of putting together the syllabus for my class "Seminar in Accumulation and Distribution of Financial Assets" here at the American College. I thought I'd share my proposed reading list for the class, in case anyone has any last minute feedback.

Week 1:
Traditional Analyses of Appropriate Savings Rates for Retirement

  • Gustafson, Leland V., David J. Boldt, and Bruce M. Bird. 2005. “Determining the Saving Rate Necessary for a Comfortable Retirement.” Journal of Personal Finance 4, 3: 62-78.
  • Ibbotson, Roger, James Xiong, Robert P. Kreitler, Charles F. Kreitler, and Peng Chen. 2007. “National Savings Rate Guidelines for Individuals.” Journal of Financial Planning 20, 4 (April): 50-61.
  • Ervin, Danny M., Gregory K. Faulk, Joseph C. Smolira. 2009. “The Impact of Asset Allocation, Savings, and Retirement Horizons, Savings Rates, and Social Security Income in Retirement Planning: A Monte Carlo Analysis.” Financial Services Review 18, 313-331.

Week 2:
Asset Allocation in the Accumulation Phase

  • Booth, Laurence. “Asset Allocation: The Long View.” Chapter 12 in Retirement Income Redesigned (ed. by Harold Evensky and Deena Katz).
  • Schleef, Harold J., and Robert M. Eisinger. 2011. “Life-Cycle Funds: International Diversification, Reverse Glide Paths, and Portfolio Risk.” Journal of Financial Planning 24, 1 (January): 50-58.
  • Basu, Anup K., and Michael E. Drew. 2009. “Portfolio Size Effect in Retirement Accounts: What Does It Imply for Lifecycle Asset Allocation Funds?” Journal of Portfolio Management 35, 3 (Spring): 61–72.
  • Pfau, Wade D. 2011. “The Portfolio Size Effect and Lifecycle Asset Allocation Funds: A Different Perspective.” Journal of Portfolio Management 37, 3 (Spring): 44–53.
  • Pfau, Wade D. 2013. “The Lifetime Sequence of Returns Risk – A Retirement Planning Conundrum.” Unpublished Working Paper.

Week 3
Retirement Income: Goals, Risks and Tools

  • Society of Actuaries. 2011. “Managing Post-Retirement Risks: A Guide to Retirement Planning.” (October). Available from:
  • Milevsky, Moshe A., and Anna Abaimova. “Risk Management During Retirement.” Chapter 10 in Retirement Income Redesigned (ed. by Harold Evensky and Deena Katz).
  • Pfau, Wade D. 2013. “Analyzing an Income Guarantee Rider in a Retirement Portfolio.” Journal of Retirement 1, 1 (Summer): 100-109.
  • Gadenne, Francois. 2011. “2006-2011: An Update of RIIA’s 2006 ‘Founding’ White Paper.” Retirement Management Journal 1, 1 (Spring): 5-21.
  • Carey, H. “Rick”, and Jeffrey K. Dellinger. “Immediate Annuities Structure, Mechanics, and Value.” Chapter 19 in Retirement Income Redesigned (ed. by Harold Evensky and Deena Katz).

Week 4
Safe Withdrawal Rates

  • Bengen, William P. “Sustainable Withdrawals.” Chapter 13 in Retirement Income Redesigned (ed. by Harold Evensky and Deena Katz).
  • Pfau, Wade D. 2012. “Capital Market Expectations, Asset Allocation, and Safe Withdrawal Rates.” Journal of Financial Planning 25, 1 (January): 36-43.
  • Pfau, Wade D. 2011. “Safe Savings Rates: A New Approach to Retirement Planning over the Life Cycle.” Journal of Financial Planning 24, 5 (May): 42–50.
  • Kitces, Michael. “Practical Applications of 20 Years of Safe Withdrawal Rate Research.” The Kitces Report (March 2012).
  • Cooley, Philip L., Carl M. Hubbard, and Daniel T. Walz. 1998. “Retirement Savings: Choosing a Withdrawal Rate That Is Sustainable.” American Association of Individual Investors Journal 20, 2 (February): 16–21.

Week 5
Transitioning from Accumulation to Decumulation

  • Pfau, Wade D. 2011. “Getting on Track for a Sustainable Retirement: A Reality Check on Savings and Work.” Journal of Financial Planning 24, 10 (October): 38-45.
  • Bernstein, William J. 2012. The Ages of the Investor: A Critical Look at Life-cycle Investing (Investing for Adults). Efficient Frontier Publications. [all except for the section: “Fama-French: The Alternative to Leverage Early”]
  • Zwecher, Michael J. 2010. Retirement Portfolios: Theory, Construction, and Management. Hoboken, NJ: John Wiley & Sons.   Chapters 1-7, 10, Appendix A
  • Pfau, Wade D. 2012. “Life-cycle Finance and the Dimensional Managed DC Pension.” Advisor Perspectives (May 22).

Week 6
Beyond Safe Withdrawal Rates, Part 1

  • Milevsky, Moshe A., and Huaxiong Huang. 2011. “Spending Retirement on Planet Vulcan: The Impact of Longevity Risk Aversion on Optimal Withdrawal Rates.” Financial Analysts Journal 67, 2 (March/April): 45–58.
  • Sun, Wei, and Anthony Webb. 2012. “Should Households Base Asset Decumulation Strategies on Required Minimum Distribution Tables?” Center for Retirement Research at Boston College Working Paper WP 2012-10 (April).
  • Scott, Jason S., and John G. Watson. 2013. “The Floor-Leverage Rule for Retirement.” Financial Analysts Journal 69, 5 (September/October): 45-60.
  • Nevins, Daniel. 2004. "Goals-Based Investing: Integrated Traditional and Behavioral Finance." Journal of Wealth Management 6, 4 (Spring): 8-23.

Week 7
Beyond Safe Withdrawal Rates, Part 2

  • Sexauer, Stephen C., Michael W. Peskin, and Daniel Cassidy. 2012. “Making Retirement Income Last a Lifetime.” Financial Analysts Journal 68, 1 (January/February): 74-84.
  • Blanchett, David, Maciej Kowara, and Peng Chen. 2012.  “Optimal Withdrawal Strategy for Retirement-Income Portfolios.” Retirement Management Journal 2, 3 (Fall): 7-20.
  • Pittman, Sam, and Rod Greenshields. 2012. “Adaptive Investing: A Responsive Approach to Managing Retirement Assets.” Retirement Management Journal 2, 3 (Fall): 45-54.
  • Fan, Yuan-An, Steve Murray, and Sam Pittman. 2013. “Optimizing Retirement Income: An Adaptive Approach based on Assets and Liabilities.” Journal of Retirement 1, 1 (Summer): 124-135.
  • Evensky, Harold. “Withdrawal Strategies: A Cash Flow Solution.” Chapter 11 in Retirement Income Redesigned (ed. by Harold Evensky and Deena Katz)

Week 8
Improved Financial Decision Making and Retirement Outcomes

  • Blanchett, David, and Paul Kaplan. 2012. “Alpha, Beta, and Now… Gamma.” Morningstar Investment Management Working Paper (September 8).
  • Martin, Terrance, and Michael Finke. 2012. “Planning for Retirement.” SSRN Working Paper #2195138 (December 31).
  • Webb, Anthony. 2009. “Providing Income for a Lifetime: Bridging the Gap between Academic Research and Practical Advice.” AARP Public Policy Institute Working Paper 2009-11 (June).
  • Munnell, Alicia H., Alex Golub-Sass, and Nadia S. Karamcheva. 2013. “Understanding Unusual Social Security Claiming Strategies.” Journal of Financial Planning 26, 8 (August): 40-50.

Week 9
Complete Picture of Retirement Income

  • Pfau, Wade D. 2012. “Choosing a Retirement Income Strategy: A New Evaluation Framework.” Retirement Management Journal 2, 3 (Fall): 33–44.
  • Pfau, Wade D. 2013. “A Broader Framework for Determining an Efficient Frontier for Retirement Income" Journal of Financial Planning 26, 2 (February): 44-51.
  • Malhotra, Manish. 2012. “A Framework for Finding an Appropriate Retirement Income Strategy.” Journal of Financial Planning 25, 8 (August): 50–60.
  • Video introduction to Income Discovery by Manish Malhotra
  • Pfau, Wade D. 2012. “Choosing a Retirement Income Strategy: Outcome Measures and Best Practices.” Retirement Management Journal 2, 3 (Fall): 23–32.