Press Release
FOR IMMEDIATE RELEASE January 7, 2008
Every stakeholder in the retirement market needs to re-think what retirement security means in terms of financial planning. A large gap exists about how to diversify a portfolio to work toward retirement and to make it last through retirement.
This new report about what an ideal portfolio would look like and the related risk profiles of investors may breathe new life into the discussion on retirement portfolio issues. An analysis of several scholars’ work illustrates the cost-effectiveness of an annuity strategy. Compelling evidence is presented about life annuities’ (also known as income annuities) important role in a retirement portfolio.
Stakeholders don’t have a comprehensive view of the details or the principles which should guide these decisions for retirement security. But also, even sophisticated investors are making “terrible mistakes” with their 401(k) plans. Channel bias may play a hand in the distortion of retirement portfolios. The marketing might of investment firms and their prime position in employer retirement plans puts other alternatives at a disadvantage. Is it easier to listen to the loudest voices when it comes to financial asset choices?
Author Jennifer Warren says, “It’s time to re-balance the mindsets of those making retirement choices for others and present another side to the story— that of personal safety. Some of the finest minds in the financial world suggest this as a first order of business.”
A few key ideas follow:
• The diversified portfolio approach practiced for over 50 years is in need of updating.
• A new framework exists which considers the safety of the individual first before the returns of institutional investors.
• A retirement portfolio should hedge against longevity risk and allow for sufficient, regular income.
• A variety of assets, based on safety, market returns, and aspirational goals, should be in one’s consideration set for the optimal portfolio.
• Lifetime income annuities are recommended by top scholars and knowledgable finance writers as a primary tool to accomplish important financial goals in retirement.
The report “Breathing New Life into Retirement Portfolios: The Battleground for the Life Annuity” can be found at www.retirementsecurityinstitute.com.
About the Retirement Security Institute (RSI)
The RSI’s mission is to provide credible analysis and meaningful information about retirement security issues, mainly health care and financial matters. The RSI is a knowledge company which produces a synthesis of research, information, and new ideas for both professionals serving the retirement market and retirees who need useful, straightforward information.
Copies of the publication may be obtained at www.retirementsecurityinstitute.com
MEDIA CONTACT:
Jennifer Warren
jwarren@retirementsecurityinstitute.com
tel: 214-906-7695
Source: Retirement Security Institute