A New Approach to Building a Sustainable Retirement Plan Using Proven Actuarial Principles
In 2020 the COVID-19 pandemic brought us our third significant, though short-lived, bear market in stocks over the past 20 years. During this same 20-year period in the United States there were more positive than negative annual returns on equity investments, yields decreased on fixed income investments, including annuities, government debt increased and is expected to significantly expand in the future unless fiscal policies reverse course, life expectancies generally have been getting longer, medical and long-term-care costs rose faster than inflation, and Social Security’s financial position continued to worsen.
In this environment, many retired and near-retired households face significant challenges and risks in managing their assets and implementing spending and investment strategies designed to achieve their retirement spending goals.