tag:blogger.com,1999:blog-6167053228142922997.post5107976093189673905..comments2023-10-30T11:57:40.433-04:00Comments on Wade Pfau's Retirement Researcher Blog: GLWBs: Retiree Protection or Money Illusion?Anonymoushttp://www.blogger.com/profile/04168922717655562721noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6167053228142922997.post-49348921071022397572011-12-21T00:02:23.372-05:002011-12-21T00:02:23.372-05:00Thank you: that sounds like a quite reasonable sug...Thank you: that sounds like a quite reasonable suggestion to me. GLWB payouts will end up somewhere in between the inflation-adjusted and nominal annuities (or, sometimes, can be even higher than the inflation-adjusted annuity when markets do really well) and this comparison would give a good idea about how the insurance company compares the tradeoffs. GLWBs are also nice, again, because any remaining account balance can be returned.Anonymoushttps://www.blogger.com/profile/04168922717655562721noreply@blogger.comtag:blogger.com,1999:blog-6167053228142922997.post-16849055563918206102011-12-16T13:20:26.457-05:002011-12-16T13:20:26.457-05:00Would it not be a valid analysis to simply price t...Would it not be a valid analysis to simply price the 'normal' annuity, the inflation-adjusted annuity and the variable annuity. Eg.<br /> <br />No inflation protection gets you 7%. <br />Inflation (within limits) protections gets you 4%.<br />The variable annuity gives you 5% with the upside possibility of keeping up. <br /><br />That makes the tradeoff of risks a subjective judgement that is just as valid as historical data.<br /><br />Of course people may make the wrong trade off because they think stocks 'hedge' inflation, when really only stocks' dividends kept up in the 1970's. The stock prices fell because of higher discount rates being used.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6167053228142922997.post-46298612046404127602011-12-13T07:16:11.057-05:002011-12-13T07:16:11.057-05:00Thanks Dick!
I'm starting to use the word &qu...Thanks Dick!<br /><br />I'm starting to use the word "product" now. It was just during my recent trip to Boston that I became cognizant of this term. I found it really unsettling at first. I guess I would have said retirement income strategies, or something like that. I didn't really think of them as products to be sold, like Big Macs or Coca-Cola, but that's the reality for the companies providing them.Anonymoushttps://www.blogger.com/profile/04168922717655562721noreply@blogger.comtag:blogger.com,1999:blog-6167053228142922997.post-69820315072042709412011-12-13T01:52:49.972-05:002011-12-13T01:52:49.972-05:00Wade --
Love the way your column for Advisor Pers...Wade --<br /><br />Love the way your column for Advisor Perspectives exposes the omission of inflation in those, er, products.<br /><br />Dick PurcellAnonymousnoreply@blogger.com