An article in The New York Times, “How to Enjoy Retirement Without Going Broke,” is a reminder that experts — from Nobel Prize winners to financial advisors — are challenged by planning for retirement income. It also showed that those who provide investment advice are stymied by this almost universal problem for a large part of the retiree market.
On the academic side:
“It’s really nasty. It’s the nastiest, hardest problem I’ve ever looked at,” said William Sharpe, who won the Nobel Prize in economics and reported his progress on the problem of how retirees can manage their financial assets without running out of money: “I can’t say I’ve found some magic solution, because I haven’t.”
On the advisor side:
One advisory firm appears more confident than the academics with brochures touting “7 innovative ways to generate income from your nest egg.” On the other hand, they also “hate annuities” and their firm’s reward system – we make money when you do – is based on having clients take market risk, rather than providing secure income.More