The Long View
The Long View
Apr 29, 2020
Wade Pfau: The 4% Rule Is No Longer Safe
Play • 54 min

Our guest on the podcast is retirement researcher Dr. Wade Pfau. Wade is a professor of retirement income in the Ph.D. in Financial and Retirement Planning program at the American College of Financial Services. He is also co-director of the New York Life Center for Retirement Income. A prolific writer and researcher, Wade has authored papers and books on a wide spectrum of retirement-related topics, including in-retirement withdrawal rates, optimal asset allocations for retirement, and the role of annuities in retirement portfolios. He is a two-time winner of the Journal of Financial Planning's Montgomery-Warschauer Award, a two-time winner of the Academic Thought Leadership Award from the Retirement Income Industry Association, and a best paper award winner in the retirement category from the Academy of Financial Services. His latest book, part of the Retirement Researcher Guide Series, is called Safety-First Retirement Planning: An Integrated Approach for a Worry-Free Retirement.


He holds a doctorate in economics and a master's degree from Princeton University and Bachelor of Arts and Bachelor of Science degrees from the University of Iowa. He is also a Chartered Financial Analyst.


Background


Wade Pfau bio

Books by Wade Pfau


Wade Pfau blog posts on Retirement Researcher


Wade Pfau Forbes columns


Wade Pfau blog posts for WSJ’s “The Experts”


Wade Pfau on Twitter


Asset Allocation in Retirement


Kitces, M. & Pfau, W. “Reducing Retirement Risk with a Rising Equity Glide Path.Journal of Financial Planning. Vol. 1. P. 38.


Pfau, W. “To Rise or Not To Rise: Stock Allocation During Retirement.Retirement Researcher.  

Pfau, W. “4 Ways to Manage Sequence of Returns Risk in Retirement.” Retirement Researcher.

Benz, C. 2019. “Cut Stocks Or Add to Them? A Key Dilemma for Your Retirement Plan.” Morningstar.com, July 25, 2019.


Blanchett, D., Finke, M., & Pfau, W. 2013. "Asset Valuations and Safe Portfolio Withdrawal Rates." June 28, 2013.


Shiller P/E Ratio


Withdrawal Rates in Retirement


Wollman Rusoff, J. 2020. “Wade Pfau: Pandemic Tears Up 4% Rule.ThinkAdvisor, April 14, 2020.


Blanchett, D., Finke, M., & Pfau, W. “The 4 Percent Rule Is Not Safe in a Low-Yield World.Journal of Financial Planning, Vol. 26, No. 6, P. 46.


Pfau, W. 2020. “How Much Can Retirees Spend on March 11, 2020? It May Not Be What You Think.Forbes.com, March 11, 2020.


Pfau, W. “Using Reverse Mortgages in a Responsible Retirement Income Plan.Retirement Researcher.


Pfau, W. 2015. “Improving Retirement Outcomes with Investments, Life Insurance, and Income Annuities.” Forbes.com. May 23, 2015.


Finke, M., Pfau, W., & Williams, D. “Spending Flexibility and Safe Withdrawal Rates." Journal of Financial Planning.

Pfau, W. 2016. “What Is the 'Floor and Ceiling' Retirement Spending Strategy?Forbes.com, Oct. 18, 2016.


Pfau, W. 2015. "Making Sense Out of Variable Spending Strategies for Retirees.Journal of Financial Planning, Vol. 10, P. 42.

Bengen, W.P. “Conserving Client Portfolios During Retirement, Part IV.FPA Journal.


Guyton, J.T. & Klinger, W.J. “Decision Rules and Maximum Initial Withdrawal Rates.FPA Journal.


Blanchett, D. 2013. “Simple Formulas to Implement Complex Withdrawal Strategies.Journal of Financial Planning, Vol. 26, No. 9, P. 40.

Healthcare and Long-Term Care


Blanchett, D. 2013. “Estimating the True Cost of Retirement.” Morningstar.


Pfau, W. “What Is Age Banding and What Does It Mean for Retirees?Retirement Researcher.


Pfau, W. 2016. “Two Options for Funding Long-Term Care Expenses.Forbes.com. Jan. 12, 2016.


Finke, M. and Pfau, W. 2017. “Managing Long-Term Care Spending Risks in Retirement.AnnuityAdvisors.com.


Annuities


Pechter, K. 2019. " 'Safety-First' Income Plans, Per Wade Pfau.Retirement Income Journal, Oct. 10, 2019.


Hopkins, J. 2019. “3 Reasons Annuities Are the Unsung Heroes of Retirement Income Planning.Forbes.com. June 14, 2019.


Pechter, K. 2019.  “The Reason for SPIAs, from Pfau and Finke. Retirement Income Journal, April 25, 2019.


Bogleheads On Investing Podcast
Bogleheads On Investing Podcast
bogleheads
Episode 030: Sarah Newcomb, host Rick Ferri
Sarah Newcomb, Ph.D., is a behavioral economist for Morningstar. In this role, she works to integrate the findings of her research into Morningstar's financial management applications and tools. Sarah has expertise in consumer psychology, economic decision-making, personal money management, and cognitive and social psychology. Before joining Morningstar in 2015, Sarah earned her doctorate in behavioral economics from the University of Maine, where her work focused on the psychological barriers to sound personal money management. She is the author of LOADED: Money, Psychology, and How to Get Ahead without Leaving Your Values Behind (Wiley, 2016). This podcast is hosted by Rick Ferri, CFA, a long-time Boglehead and investment adviser. The Bogleheads are a group of like-minded individual investors who follow the general investment and business beliefs of John C. Bogle, founder and former CEO of the Vanguard Group. It is a conflict-free community where individual investors reach out and provide education, assistance, and relevant information to other investors of all experience levels at no cost. The organization supports a free website at Bogleheads.org, and the wiki site is Bogleheads® wiki. Since 2000, the Bogleheads' have held national conferences in major cities around the country. There are also many Local Chapters in the US and even a few Foreign Chapters that meet regularly. New Chapters are being added on a regular basis. All Bogleheads activities are coordinated by volunteers who contribute their time and talent. This podcast is supported by the John C. Bogle Center for Financial Literacy, a non-profit organization approved by the IRS as a 501(c)(3) public charity on February 6, 2012. Your tax-deductible donation to the Bogle Center is appreciated.
55 min
Financial Decoder
Financial Decoder
Charles Schwab
Are You Rationalizing an Investing Mistake?
If you save money and invest it consistently, your path toward meeting your goals may seem simple. But most investors quickly discover that there are hurdles in the way—including our own brains. There are many cognitive and emotional biases that can trap us, and investors sometimes rationalize falling prey to these biases in familiar ways. In this episode, Mark is joined by Brad Bartick, branch manager of the downtown Denver Schwab branch, and financial consultant Joanna Heckman to discuss four different biases that investors have faced recently and what they sound like in action. Subscribe to _Financial Decoder_ for free on Apple Podcasts or wherever you listen. _Financial Decoder_ is an original podcast from Charles Schwab. If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important Disclosures: Investors should consider carefully information contained in the prospectus or, if available, the summary prospectus, including investment objectives, risks, charges, and expenses. Please read it carefully before investing. The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve. Investing involves risk including loss of principal. Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance. This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager. Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries. Google Podcasts and the Google Podcasts logo are trademarks of Google LLC. Spotify and the Spotify logo are registered trademarks of Spotify AB.Important Disclosures: The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve. Investing involves risk including loss of principal. Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance. Diversification strategies do not ensure a profit and do not protect against losses in declining markets. The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party. Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries. Google Podcasts and the Google Podcasts logo are trademarks of Google LLC. Spotify and the Spotify logo are registered trademarks of Spotify AB. (0221-1EPK)
29 min
Sound Investing
Sound Investing
Paul Merriman
The Ultimate Buy and Hold Strategy: 2021 Update
Paul Merriman discusses the 2021 updated Ultimate Buy and Hold Strategy, designed to show why the 10 equity asset classes should be part of a diversified portfolio. This new study uses an expanded base of returns so that all 10 equity asset classes are reflected in the 1970 to 2020 period. While the expansion of returns makes the returns more dependable, the results are virtually the same as with the previously limited data base. Every year since 2012, The Merriman Financial Education Foundation updates this UB&H Strategy as among its most important work. The 2021 study makes reference to two tables that listeners will want to review. They are the Worldwide Equity Portfolio Tables 50% US/50% Int’l and the Worldwide Equity Portfolio Tables 70% US/30% Int’l. This podcast is part of the educational offerings from The Merriman Financial Education Foundation, a registered 501(c)3.  If you found value in this podcast, here are five ways to support the podcast and our foundation: 1)     Leave a podcast review on your player of choice. 2)    Sign up for our biweekly newsletter at PaulMerriman.com 3)    Use our M1 Finance affiliate link to set up a brokerage account and use our portfolio suggestions. If you fund your account with a minimum of $1,000, our foundation will receive a one-time fee at no cost to you, which helps support our financial education projects.. 4)    Buy our latest book, We’re Talking Millions! 12 Simple Ways To Supercharge Your Retirement available at Amazon and other online outlets. 5)  Consider making a tax-deductible donation to the Foundation to support our mission to provide financial education to investors.  Thank you!
46 min
WashingtonWise Investor
WashingtonWise Investor
Charles Schwab
Will the Markets Get What They Want From Washington?
Minus the daily tweets that drove the news cycle for four years, Washington has settled into a different rhythm. In this episode of _WashingtonWise Investor_, Mike Townsend is joined by Liz Ann Sonders, Schwab’s chief investment strategist, to consider what’s driving the markets and what it will take to meet expectations. They also discuss what investors have learned from recent hyper-speculative trading, the impact on the markets should corporate tax rates rise, and how the building and bursting of micro-bubbles can impact the entire market. Mike also considers how the next round of economic stimulus is shaping up and moving through Congress, how regulators and lawmakers are investigating the need for more regulations in the wake of recent market volatility, and how recent departures in the House bring new pressure on Speaker Pelosi’s ability to hold her party together. _WashingtonWise Investor_ is an original podcast from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise. If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important Disclosures The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party. The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. This content was created as of the specific date indicated and reflects the author’s views as of that date. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance. Investing involves risk including loss of principal. Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions. All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request. Short selling is an advanced trading strategy involving potentially unlimited risks, and must be done in a margin account. Margin trading increases your level of market risk. (0221-1C4M)
33 min
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