Gender gap: Men and women plan differently for retirement

This article covers a very interesting study on the differences between men and women when it comes to retirement.

For me, the biggest difference, according to the study, is that men look at the big picture and women are more detail-oriented.

One commentator noted that men may, in fact, be deceiving themselves when it comes to retirement, while women may be more realistic. Instead, they start planning later, intuitively anticipating their statistically greater amount of  time spent in retirement.

How to not run out of money in retirement

I guess if the advice comes from individuals involved in managing the Yale endowment fund ($26 billion), it’s hard to disagree.

And I don’t… Adding a deferred income annuity to your retirement portfolio makes sense to them and to me.

The point they make is that the payout is so attractive because the premium is discounted in two ways. First, for interest, but also for the percentage of purchasers who don’t make it to the payment date. For example, if only, say, 30% of male retirees survive to age 90, then the premium for that one payment is discounted by 70%. Then, it’s even further discounted for interest.

Compare that to the amount you’d have to invest to be assured of that payment!

Clients are living longer, putting pressure on retirement advice

You’ve heard of the income gap, the gender gap, and now the advisor-client gap.

That’s the period between the age when your advisor retires and the age to which you survive. That gap could be 10, 20 or even 30 years.

So forget about your calling the advisor for what to do with your investment accounts, distributions from your rollover IRA account, or with questions about the tax deductibility of certain expenses.

You’re on your own! That’s why it’s so important to get a retirement plan that completes itself, without the intervention of your advisor or anyone else.