Articles

May 29, 2017
Advisor Perspectives
A Proven Way to Budget Clients’ Spending
(originally titled "Give Your Retired Clients Another Data Point Each Year to Help Them Make Better Financial Decisions")


April 28, 2017
Society of Actuaries’ Financial Wellness Collection
The Society of Actuaries has released the 2017 Financial Wellness Collection.  The selection committee awarded our entry, “Using Sound Actuarial Principles to Enhance Financial Well Being” a third prize.   Readers may find these essays to be of interest. 


March 7, 2017
Advisor Perspectives
The Consequences of Overestimating Retirement Expenses


November 11, 2016
Advisor Perspectives
The Only Withdrawal Plan You Will Ever Need


May 2016
Society of Actuaries
Using Sound Actuarial Principles to Better Manage Retirement Finances


September 7, 2015
Advisor Perspectives
Think Like an Actuary to Become a Better Advisor


May/June 2015
Contingencies
Look to the North For a Better Approach to Financing Social Security


February 2014
A Better Systematic Withdrawal Strategy--The Actuarial Approach
This article (published in Volume 13 Issue 2 of the Journal of Personal Finance, p. 51) sets out a relatively simple process to help you determine how much of your available retirement resources you can spend each year, which we call your “annual spendable amount" (or spending budget). Some readers may find the original article submitted to the Journal in February, 2014 to be easier to read.

This actuarial approach involves performing an annual valuation of assets and liabilities (the present value of future withdrawals) using deterministic assumptions about future experience and one of the spending calculator spreadsheets below.  An algorithm is then applied each year to smooth variations in assets or liabilities resulting from actual experience or changes in assumptions.

May 2013
Comments on DoL proposal: benefit statements


March 2010
Self-Insuring Your Retirement? Manage the Risks Involved Like an Actuary
Original Article Describing Spend-Down Process and How to Use Spending Calculators