notices - See details
Notices
Bridge over ocean
1 January 2015 Financial Analysts Journal Volume 71, Issue 1

Making Retirement Income Last a Lifetime

Stephen C. Sexauer , Michael W. Peskin and Daniel Cassidy

To enable investors to spend down the assets in their defined contribution accounts more easily, the authors propose a decumulation benchmark comprising a laddered portfolio of TIPS for the first 20 years (consuming 88 percent of available capital) and a deferred life annuity purchased with the remaining 12 percent. This portfolio can be used directly by the investor (akin to indexing) or as a benchmark for evaluating the performance of a more aggressive strategy.

Read the Complete Article in Financial Analysts Journal Financial Analysts Journal CFA Institute Member Content