With life expectancies on the rise, retirement can now span decades. How can you make sure your money lasts? In today’s episode of Carson Group and PIMCO’s Retirement Income Series, Dr. Roger Ibbotson, Professor in the Practice Emeritus of Finance at Yale School of Management and Chairman of Zebra Capital Management, an equity investment and hedge fund manager, offers his insights on how to tackle the question that’s keeping advisors and clients up at night.

Dr. Ibbotson is one of the most influential scholars and practitioners in the field of asset allocation and has written numerous books and articles, including his groundbreaking and widely referenced yearbook “Stocks, Bonds, Bills, and Inflation.” His research spans a wide range of financial topics, including liquidity, investment returns, mutual funds, international markets, portfolio management and valuation. He recently published “Lifetime Financial Advice.”

In today’s episode, he speaks with Jamie about longevity (“the single biggest risk in retirement”), why bonds are no longer the best way to protect a portfolio, the pros and cons of fixed index annuities, the biggest mistakes people make in retirement income planning and why workplace pensions are not coming back.

Key Takeaways

  • Traditionally, bonds were viewed as the best way to de-risk a portfolio for people nearing or in retirement. This strategy no longer works with low interest rates. You are not going to get the same returns on bonds in the future that you got in the past.
  • Through their annuity products, insurance companies are assuming the role once played by defined benefit pension plans and helping ensure people have enough money to get through a long retirement. Social Security does this, too, but it’s not enough to cover most people’s needs.
  • The biggest problem with annuities is how complicated they are to understand. Insurance companies have to do a better job of simplifying them, making them more transparent and comparable.


“Most people have enough money to get through a short retirement, not necessarily a long retirement. We want to have long retirements. Insurance companies are playing a big role in helping make sure your money lasts.” – Dr. Roger Ibbotson


Schedule a consultation to learn how Carson can help you help your clients and grow your business. Visit PIMCO to learn more about the work it is doing in the retirement income planning space.

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