The title of my post this week comes from Professor Moshe Milevsky for the second time. I’m giving you all a break from reading and including a link to this video where the good professor talks again about the difference between personal and financial capital.
Moshe Milevsky Annuities Analysis
Mr. Milevsky makes is very apparent that the amount of risk a person takes with financial assets should be inversely related to the type of risk associated with an individual’s personal capital.
If your income is unstable, your invested assets should be allocated conservatively. Also, as your number of earning years decreases so should the level of risk on your financial assets.
Milevsky and I share these beliefs and I enjoy seeing someone of his stature provide evidence of the need for conservative retirement planning.
Annuities work well within this planning framework. Each of you here understands that to a certain degree, which is why I am working to clarify the need for and use of annuities in retirement income planning.
Revisit the available reports and feel free to call or email at your convenience with specific questions you may have.
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