Archive by tag "risk"

Another Dimension to Retirement Risks

September 16th, 2015

As part of my responsibility to clients, I continue to follow the work of several leading experts on the risks of retirement. Steve Vernon, an American actuary, recently surprised me by adding another whole category of retirement risks that he calls behavioral risks.

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Retirement Risks: Sequence of Returns

June 22nd, 2012

One of the choices available to you if you are entering retirement is to set up a Systemic Withdrawal Plan (SWiP). This involves withdrawing a fixed dollar amount from your savings each month. Among other problems with this approach, it exposes you to the poorly understood sequence of returns risk. To illustrate this risk, I [...]

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Retirement Risks: Overview

February 2nd, 2012

Over the last several newsletters, I have spent time discussing the risks of retirement. This post will present an overview of retirement risks drawing on the most recent work of some leading Canadian experts.

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Retirement Risks: Inflation

January 10th, 2012

Inflation is the economic process that over time erodes purchasing power. Inflation is measured by changes in the consumer price index. The consumer price index is calculated by Statistics Canada and is based on current prices of a basket of goods and services representative of consumer spending.

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Retirement Risks: Longevity

November 23rd, 2011

Longevity risk is the risk of outliving your money. Longevity is estimated using life expectancy. Life expectancy is the average age at which a cohort of the population is expected to die. A cohort is defined by year of birth, sex, and state of health. The key phrase here is average. 50% of the group [...]

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Starting the Transition: Managing Risk

April 11th, 2011

I turned 65 in February and wife Mary is about the same age (details confidential). In common with many people our age, we  are at the start of a transition from accumulating retirement savings to converting those assets into an income stream that supports our lifestyle and our vision of retirement. We have spent a [...]

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