In this conversation, Wade Pfau and Alex Murguia discuss retirement planning topics including market downturns, buffer assets, demographic trends, and emerging products like tontines and buffered ETFs. They highlight how historical market performance shapes future expectations and emphasize the role of strategic asset allocation in retirement income planning.
Takeaways
- Market downturns can last longer than five years, impacting retirement planning.
- Buffer assets can help retirees weather market downturns without selling at a loss.
- Demographic trends may influence market performance and interest rates in the future.
- Modern tontines could provide innovative solutions for retirement income.
- Combining safety for essential expenses with discretionary spending can optimize retirement income.
- Historical returns should not be the sole basis for future market assumptions.
- Buffered ETFs may serve as effective tools for risk diversification in high market valuation environments.
- Understanding the liquidity and terms of financial products is crucial for effective retirement planning.
- Technological advances may reshape traditional financial products like tontines.
- A diversified portfolio can help manage risks associated with market fluctuations.
Chapters
00:00 Introduction and Technical Setup
03:58 Market Downturns and Retirement Planning
12:59 Buffer Assets in Retirement
19:09 Tontines and Modern Financial Solutions
23:06 Combining Safety and Growth in Retirement Income
29:07 Buffered ETFs and Risk Diversification
33:31 Retirement Income Perspectives
34:06 Market Valuations and Investment Strategies
Links
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This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”
