Tag Archives: S&P Stride

Communicating Income: Lessons From Behavioral Finance

In my recent book, The Behavioral Economics Approach to Winning New Clients (and Keeping the Ones You Have!), I offer a dozen recommendations to financial advisors charged with stewarding their clients’ assets to ultimately improve the relationship between client and advisor.  Several lessons are devoted to communication, specifically ways to employ trust, loss aversion and Read more […]

Standard Benchmarks Extend Standard of Living Through Retirement

What are the steps in selecting a retirement income option?  Of course cost is one of the considerations, but did you know ERISA does not require selecting the lowest cost investments?  These questions and more are explored in a recent video with Ian Kopelman (DLA Piper), and Tim Kohn (Dimensional Fund Advisors): What are some best Read more […]

How Much Will My Retirement Income Cost? Part 2

Understanding how much future spending, or consumption, an investor’s savings can support is critical in planning for retirement. As we discussed in part 1, the S&P STRIDE Index Series can help by providing a framework for estimating the annual income stream available in retirement using the concept of the Generalized Retirement Income Liability or “GRIL” Read more […]

How Much Will My Retirement Income Cost? Part 1

Gaining clarity around the future spending, or consumption, that an investor’s savings can support is critical in planning for retirement. Being armed with information about retirement preparedness can inform one’s decisions about savings rate, expense budget in retirement, and investment selections. A first step towards solving this challenge is to understand how much retirement income Read more […]

Spending Too Little In Retirement?

Yes, you read that right.  You might not be spending enough in retirement.  It seems impossible after rigorously following savings plans during the course of your career in order to achieve that golden nest-egg to provide just what you need to retire.  However, a problem arises when “what you need to retire” might not be Read more […]

2017 Retirement Funding Update for DC Account Holders

2017 was generally kind to U.S. shareholders of domestic and international equities, but long-term U.S. Treasury Inflation-Protected Securities (TIPS) rates drifted downward, increasing the present value of future inflation-adjusted cash flows discounted to the TIPS curve. An important question for retirement savers may be whether investment returns outpaced the increased cost of securing future in-retirement Read more […]

S&P STRIDE Target Date Funds: Making STRIDEs in Evaluating the Performance of Retirement Solutions

Back in the Great Recession of 2008-2009, participants experienced a dramatic stock market decline.  The S&P 500 index had a “peak-to-trough” decline of 51 percent! Coincidentally, many retirees and near-retirees were gaining their initial experience with something called a Qualified Default Investment Alternative (QDIA). The QDIA is a “safe harbor” (Department of Labor Regulation 29 Read more […]

TIPS Improve Income Stability For Lifestyle Goals

Commodities are a direct way to protect against inflation since they are the natural resources that build society.  The same food and energy that is in CPI (Consumer Price Index from the Bureau of Labor Statistics,) is in the commodity indices like the S&P GSCI and DJCI, and more energy has provided more inflation protection since energy is Read more […]

The Price of Retirement

In my last post, I discussed variability in cost and affordability of retirement income.  I used some data from S&P STRIDE, our new benchmark that provides a cradle-to-grave yardstick for wealth accumulation and income generation.  This week, I will look a little closer at how we measure retirement income, as well as its present value Read more […]