Author Archives: peter benedek
Annuity/Pension vs. Lump-Sum- Part 3: Quantitative considerations
In a nutshell In this blog post (Part 3 in the series), in the context of a specific example for a 67 year old couple, we explore quantitative considerations toward the annuity/pension vs. lump-sum decision, such as: (1) fixed and discretionary expenses, (2) capital market expectations, (3) how/when/if to annuitize, (4) understanding the value delivered […]
Hot Off the Web- Aug 11, 2014
Contents: Taxes on failed investments? dying performance investing, 35-to45 year old most indebted, cost of delayed home purchase, Nortel pensioners condemn bondholder ‘deal’, pension reform discussion shifts to target benefit (TB), CARP on 2015 budget: abolish mandatory RRIF withdrawals and expand CPP, US middle class: no savings and no safety-net, UK pension reform: 50p government […]
Annuity/Pension vs. Lump-Sum- Part 2: Drivers to and away from annuitization
In a nutshell In Part 2 of this series of five blog posts, we approach the annuity/pension vs. lump-sum decision qualitatively to allow individuals to tentatively screen themselves into an annuity or lump-sum direction; in follow-on blog posts we explore quantitatively the decision to annuitize, when it might make sense to do so and how the outcomes […]
Hot Off the Web- Aug 4, 2014
Contents: Affordability of early retirement, insurance co victimizes annuitant, active funds flopped again, advisors need to justify fees, loving your mortgage, check brokerage statements for unauthorized transactions, Ontario’s stealth tax increases via tax bracket creep, US home price increases slow, Florida home prices still 36% below peak, Australia proposes next phase of pension reform, Ontario […]
Annuity/Pension vs. Lump-Sum- Part 1: Making the right decision for you
In a nutshell In Part 1 of this five part series, the focus is on: (1) risks in retirement, (2) life expectancy and impact on retirement planning age and (3) annuities are insurance not investment The three key risks in retirement are: longevity risk, inflation risk and market risk. Annuities/pensions address some aspect of these risks, while […]
Hot Off the Web- Jul 28, 2014
Contents: Annuity vs. RRIF- can they even be compared? managing family portfolio after you’re gone, seniors natural fraud targets, how is your portfolio managed? work till 70 if you have little savings, Canada warned of coming US-style housing crash? Nortel bondholders to get $1B extra interest-final nail in Canadian pensioners’ coffin? UK drops mandatory annuitization […]
Hot Off the Web- Jul 21, 2014
Contents: Adviser investment performance, ex-reader calls-it-as-he-sees-it: duty to own family comes before duty to client, benefits of low cost living, dangerous investments, estate distribution and its message, breakdown of costs of investment management, Vancouver/Toronto house prices up-now 25% overvalued- is China’s drive to internationalize yuan a key driver? Canada house price correction would be good […]
Hot Off the Web- Jul 14, 2014
Contents: Clements: my index fund portfolio, Capital Market Expectations and its impact on portfolios, IRS offers amnesty to Canadians required to file U.S. returns, retirement planning, Toronto real estate continues firing on all cylinders, longevity insurance in 401(k)s, New Brunswick public employees sue province for pension changes, states looking to up employees pre-tax retirement plan […]
Hot Off the Web- Jul 7, 2014
Contents: Estate planning, portfolio rebalancing, Canadian investors are losers, mandatory RRIF rules, robo-advisers in Canada, Florida snowbirds’ property tax alert, longevity insurance option added to 401(k)s! CPP based Ontario pension plan high cost- but doesn’t have to be, PBGC warns on pooled pension plans, EPI better reflects everyday inflation than CPI, volunteers needed for UK […]
Hot Off the Web- June 30, 2014
Contents: International bonds: no thanks, Bogle on non-US investor allocation: 25% home country, 50% US and 25% other non-US, annuities have higher ‘returns’ than bonds? robo-advisers include trusts and tax-loss selling, U.S. homes: prices (Apr) up 10.8% YoY while sales (May) up 4.9% MoM, 2nd homes concentration ups prices, Social Security decision complicated, Nortel bankruptcy […]
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