MONEY MATTERS with Christopher Hensley

Probability-based or safety-first? What trade-offs exist between these two dramatically different philosophies for retirement income planning? Wade Pfau discusses his new book - Safety-First Retirement Planning: An Integrated Approach for a Worry-Free Retirement.

 

We were joined today by bestselling author Wade D. Pfau, Ph.D., CFA, RICP.

Dr. Pfau is the director of the Retirement Income Certified Professional designation and a Professor of Retirement Income at The American College of Financial Services in King of Prussia, PA. As well, he is a Principal and Director for McLean Asset Management. He holds a doctorate in economics from Princeton University and publishes frequently in a wide variety of academic and practitioner research journals on topics related to retirement income. He hosts the Retirement Researcher website, and is a contributor to Forbes, Advisor Perspectives, Journal of Financial Planning, and an Expert Panelist for the Wall Street Journal. He is the author of the books, Safety-First Retirement Planning: An Integrated Approach for a Worry-Free Retirement, How Much Can I Spend in Retirement? A Guide to Investment-Based Retirement Income Strategies, and Reverse Mortgages: How to Use Reverse Mortgages to Secure Your Retirement.

 

About Safety-First Retirement Income Planning

To learn two fundamentally different philosophies for retirement income planning, which I call probability-based and safety-first, diverge on the critical issue of where a retirement plan is best served: in the risk/reward trade-offs of a diversified and aggressive investment portfolio that relies primarily on the stock market, or in the contractual protections of insurance products that integrate the power of risk pooling and actuarial science alongside investments. The probability-based approach is generally better understood by the public. It advocates using an aggressive investment portfolio with a large allocation to stocks to meet retirement goals. My earlier book How Much Can I Spend in Retirement? A Guide to Investment-Based Retirement Strategies provides an extensive investigation of probability-based approaches. But this investments-only attitude is not the optimal way to build a retirement income plan. There are pitfalls in retirement that we are less familiar with during the accumulation years. The nature of risk changes. Longevity risk is the possibility of living longer than planned, which could mean not having resources to maintain the retiree’s standard of living. And once retirement distributions begin, market downturns in the early years can disproportionately harm retirement sustainability. This is sequence-of-returns risk, and it acts to amplify the impacts of market volatility in retirement. Traditional wealth management is not equipped to handle these new risks in a fulfilling way. More assets are required to cover spending goals over a possibly costly retirement triggered by a long life and poor market returns. And yet, there is no assurance that assets will be sufficient. For retirees who are worried about outliving their wealth, probability-based strategies can become excessively conservative and stressful.This book focuses on the other option: safety-first retirement planning. Safety-first advocates support a more bifurcated approach to building retirement income plans that integrates insurance with investments, providing lifetime income protections to cover spending. With risk pooling through insurance, retirees effectively pay an insurance premium that will provide a benefit to support spending in otherwise costly retirements that could deplete an unprotected investment portfolio. Insurance companies can pool sequence and longevity risks across a large base of retirees, much like a traditional defined-benefit company pension plan or Social Security, allowing for retirement spending that is more closely aligned with averages. When bonds are replaced with insurance-based risk pooling assets, retirees can improve the odds of meeting their spending goals while also supporting more legacy at the end of life, especially in the event of a longer-than-average retirement. We walk through this thought process and logic in steps, investigating three basic ways to fund a retirement spending goal: with bonds, with a diversified investment portfolio, and with risk pooling through annuities and life insurance. We consider the potential role for different types of annuities including simple income annuities, variable annuities, and fixed index annuities. I explain how different annuities work and how readers can evaluate them. We also examine the potential for whole life insurance to contribute to a retirement income plan. When we properly consider the range of risks introduced after retirement, I conclude that the integrated strategies preferred by safety-first advocates support more efficient retirement outcomes. Safety-first retirement planning helps to meet financial goals with less worry. This book explains how to evaluate different insurance options and implement these solutions into an integrated retirement plan.

 

More about Houston Money Week visit:

www.Houstonmoneyweek.org

http://www.cheatsheet.com/personal-finance/how-schools-can-improve-their-personal-finance-education.html/

Financial Advisor Magazine Articles:

http://www.fa-mag.com/news/advisors-stay-the-course-amid-monday-s-market-drop-22864.html?section=3 

http://www.fa-mag.com/news/on-it-s-80th-anniversaryadvisors-consider-social-security-s-impactfuture-22784.html?section=3

You can listen live by going to www.kpft.org and clicking on the HD3 tab.
You can also listen to this episode and others by podcast at:

http://directory.libsyn.com/shows/view/id/moneymatters

or

www.moneymatterspodcast.com

#KPFTHOUSTON #HoustonMoneyWK #WadePfau #ChrisHensley #FinancialPlanning #FinancialAdvisor #MoneyMattersPodcast #KPFT #Houston #Texas #UnitedStates 

Direct download: Money_Matters_Episode_246.mp3
Category:Financial Literacy -- posted at: 9:16am PDT
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When preparing for standardized tests, most students only study content and strategy. But teacher and mindfulness expert Logan Thompson claims that those are just the tip of the iceberg.

Beyond the Content shows readers how to use mindfulness to identify and cope with hindering thoughts and emotions--what author Logan Thompson calls "passengers."

Thompson says that while mindfulness is already practiced in businesses, colleges, and professional sports to optimize performance, it's long overdue in test prep. 

Logan Thompson scored in the 99th percentile on the SAT(R), GRE(R), and GMAT(R). He has studied and practiced mindfulness since 2008. After earning his MBA from Vanderbilt University, Thompson lived at the Insight Meditation Society in Barre, MA, for two and a half years, spending several months in silent mindfulness retreats. He also completed a two-year mindfulness teacher-training program by Inward Bound Mindfulness Education. Thompson holds a master's of education in human development and psychology from Harvard University and is an adjunct psychology professor. He has spend the past several years teaching both mindfulness and test prep for Manhattan Prep. 

 

Beyond the Content is available wherever books are sold.

 

Follow Logan Thompson:

twitter.com/loganjthompson

instagram.com/loganjthompson

facebook.com/loganjthompson1

Website: loganjthompson.com

 

To learn more about Houston Money Week visit:

www.Houstonmoneyweek.org

 

http://www.cheatsheet.com/personal-finance/how-schools-can-improve-their-personal-finance-education.html/

Financial Advisor Magazine Articles:

http://www.fa-mag.com/news/advisors-stay-the-course-amid-monday-s-market-drop-22864.html?section=3 

http://www.fa-mag.com/news/on-it-s-80th-anniversaryadvisors-consider-social-security-s-impactfuture-22784.html?section=3

You can listen live by going to www.kpft.org and clicking on the HD3 tab.
You can also listen to this episode and others by podcast at:

http://directory.libsyn.com/shows/view/id/moneymatters

or

www.moneymatterspodcast.com

#KPFTHOUSTON

#HoustonMoneyWK

#LoganThompson

Direct download: Money_Matters_Episode_245.mp3
Category:Financial Literacy -- posted at: 7:52am PDT
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Can worker cooperatives help prevent the silver tsunami? The threat of impending retirement of many business-owning baby boomers could result in the closure of businesses, loss of jobs, and loss of critical local services.

Today, We were joined today by Executive Director of Democracy at Work Institute, Melissa Hoover.

Democracy at Work Institute, the think-and-do-tank that expands worker cooperatives as a strategy to address economic and racial inequality. A leader in the worker ownership movement for over fifteen years, Melissa helped start and grow the United States Federation of Worker Cooperatives, the national grassroots membership organization for worker-owned businesses. She was a cooperative business developer for many years with the Arizmendi Association of Cooperatives in Oakland, doing business and capital planning for two startups, training cooperative members, and serving as CFO in the first year of each startup's operations. In 2018, Melissa was named an Executive Fellow of the Rutgers Institute for the Study of Employee Ownership and Profit Sharing. She currently sits on the Board of Directors of The ICA Group/Local Enterprise Assistance Fund, The Working World, and Safe Passages of Oakland, and serves as a strategic advisor to foundations, investors, nonprofits, local governments and other organizations that want to incorporate worker ownership into their economic development and community wealth-building programs. Originally from Kansas City, Melissa attended Stanford University on a full scholarship, earning a BA in History with a research focus on immigrant women's role building cooperative movements in the U.S.

 

To learn more about the Democracy at Work Institute, visit:

https://www.institute.coop

To learn more about Houston Money Week visit:

www.Houstonmoneyweek.org

http://www.cheatsheet.com/personal-finance/how-schools-can-improve-their-personal-finance-education.html/

Financial Advisor Magazine Articles:

http://www.fa-mag.com/news/advisors-stay-the-course-amid-monday-s-market-drop-22864.html?section=3 

http://www.fa-mag.com/news/on-it-s-80th-anniversaryadvisors-consider-social-security-s-impactfuture-22784.html?section=3

You can listen live by going to www.kpft.org and clicking on the HD3 tab.
You can also listen to this episode and others by podcast at:

http://directory.libsyn.com/shows/view/id/moneymatters

or

www.moneymatterspodcast.com

#KPFTHOUSTON

#HoustonMoneyWK

#USFWC

Direct download: kpfthd3_190927_110000moma.mp3
Category:Corporate Social Responsibility -- posted at: 9:59am PDT
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Did you lose your car in the flood waters that Imelda brought to the Gulf Coast area? Without reliable transportation to get you to work or take the kids to school how do you start getting back on track? Are you worried that based on your credit history you might get price gouged or pay an unreasonably high interest rate? Many people are not aware of a nonprofit organization that can help get you back on the road. We already have solutions in place as part of the Rebuild Texas Fund partnership.

We were joined today by On The Road Regional Director, Lucretia Jelks.

On the Road Lending is a 501(c)3 nonprofit organization founded in 2013 that provides vehicle selection assistance and long-term financial mentoring to address a little understood, but substantial problem—providing a way for low-income individuals and families to overcome transportation barriers so they can get to work, lead healthier lives, and avoid predatory lending. We help people improve their credit and purchase fuel-efficient, reliable cars, financing them through our sister private-equity loan fund with a low-cost loan.

 

To learn more about On The Road Lending, visit:

https://www.ontheroadlending.org/

To learn more about Houston Money Week visit:

www.Houstonmoneyweek.org

 

http://www.cheatsheet.com/personal-finance/how-schools-can-improve-their-personal-finance-education.html/

Financial Advisor Magazine Articles:

http://www.fa-mag.com/news/advisors-stay-the-course-amid-monday-s-market-drop-22864.html?section=3 

http://www.fa-mag.com/news/on-it-s-80th-anniversaryadvisors-consider-social-security-s-impactfuture-22784.html?section=3

You can listen live by going to www.kpft.org and clicking on the HD3 tab.
You can also listen to this episode and others by podcast at:

http://directory.libsyn.com/shows/view/id/moneymatters

or

www.moneymatterspodcast.com

#KPFTHOUSTON

#HoustonMoneyWK

#OTRLending

Direct download: MMEPISOD243E.mp3
Category:Financial Literacy -- posted at: 3:48pm PDT
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Have you ever wondered what the best way to differentiate yourself is? How can you rise about the competition and all the noise in today's crowded world?

In Think and Grow Rich - Success and Something Greater, authors Sharon Lechter and Greg Reid once again join forces with the Napoleon Hill Foundation including never before published original content from Napoleon Hill. In today's world of instant news and social media, businesses, leaders and influencers must find a way to differentiate themselves from all their competition and engage people in their missions. They need to rise above all the noise. They can do this by defining their Secret Sauce or Magic Key. Reid and Lechter followed the proven path of Hill and sought out multi-millionaires and asked them to share the Magic Keys to their success and legacy. While their individual stories differ significantly...they all share a devotion to their mission...to their secret sauce...their Magic Key...their legacy.

John Assaraf - Mastery of Thought
John Ashworth - Find the Gap in the Marketplace
Michael Houlihan and Bonnie Harvey - Ask the Right Questions
Rita Davenport - Build Your People

These are just a few of the people who share their stories in Think and Grow Rich - Success and Something Greater. Their stories are not just motivational...they are real...they are honest...they take the reader on their personal journeys. The readers will not just relate to the individuals highlighted in the book they will begin looking for how they can adopt their magic keys into their own journeys. Before reaching the last page, the reader will already be more self-confident, more energized, more focused, ready to ask the right questions and most importantly ready to take action and realize their own success, wealth and achievement, and in doing so, define and create their legacy.

To learn more about Sharon, visit:

https://sharonlechter.com/about/

To learn more about Houston Money Week visit:

www.Houstonmoneyweek.org

 

http://www.cheatsheet.com/personal-finance/how-schools-can-improve-their-personal-finance-education.html/

Financial Advisor Magazine Articles:

http://www.fa-mag.com/news/advisors-stay-the-course-amid-monday-s-market-drop-22864.html?section=3 

http://www.fa-mag.com/news/on-it-s-80th-anniversaryadvisors-consider-social-security-s-impactfuture-22784.html?section=3

You can listen live by going to www.kpft.org and clicking on the HD3 tab.
You can also listen to this episode and others by podcast at:

http://directory.libsyn.com/shows/view/id/moneymatters

or

www.moneymatterspodcast.com

#KPFTHOUSTON

#HoustonMoneyWK

#Sharonlechter

Direct download: 242.mp3
Category:general -- posted at: 10:55pm PDT
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Are you ready to get unstuck, love your work, and make the dream happen? 

If so, Brian Dixon has the answer for you in his eye-opening new book, Start with Your People: The Daily Decision that Changes Everything. After one too many burned bridges and failed projects, Brian Dixon set out to discover the secret to work you love and a life that matters. In Start with Your People, Brian shows you the single most important key to fully engage your relationships and unlock the door to purpose, passion, and profit.

The truth is, your dream is not a solo venture. You need your people. And your people need you. Start with Your People is your one-stop guide for maximizing the most important resource to succeed in business and in life: relationships. Enter a new kind of hustle - one that supercharges what's possible on your path to profitable purpose.

Start with Your People is the step-by-step blueprint you need to love your work and get after it. Packed with strategic principles, practical tips, and engaging stories, you’ll be able to lean into your home team as you move forward with clarity and confidence.

To learn more about Brian, visit:

https://briandixon.com/about#about

To learn more about Houston Money Week visit:

www.Houstonmoneyweek.org

 

http://www.cheatsheet.com/personal-finance/how-schools-can-improve-their-personal-finance-education.html/

Financial Advisor Magazine Articles:

http://www.fa-mag.com/news/advisors-stay-the-course-amid-monday-s-market-drop-22864.html?section=3 

http://www.fa-mag.com/news/on-it-s-80th-anniversaryadvisors-consider-social-security-s-impactfuture-22784.html?section=3

You can listen live by going to www.kpft.org and clicking on the HD3 tab.
You can also listen to this episode and others by podcast at:

http://directory.libsyn.com/shows/view/id/moneymatters

or

www.moneymatterspodcast.com

#KPFTHOUSTON

#HoustonMoneyWK

#BrianDixon

Direct download: 241.mp3
Category:general -- posted at: 10:45pm PDT
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Have you ever heard of a world-class photographer dubbed "A Master of Light"?

Michael Grecco is one of the best-known celebrity photographers in the world. His beautiful, insightful work is all around us--on movie posters, in advertising, on magazine covers, everywhere. “I delight in inspiring people,” he writes. “I want them to stop, think, and feel.”

Grecco grew up near New York City and received his first camera when he was 12. He went on to study filmmaking and photography as an undergraduate at Boston University's School of Communications. While still at university he began working freelance for the Associated Press as a photojournalist. During that time, he also began his career as a magazine photographer. This included an extensive body of work for various national magazines, including Time, Newsweek, Esquire, Vanity Fair, Forbes, and Rolling Stone. As a staff photographer for the Boston Herald, he won several Boston Press Photographers awards.

He is now a regular contributor to People, and regularly covers the Golden Globes, Emmy Awards, and the Academy Awards. His celebrity portraits include many well-known celebrities such as Martin Scorsese, Robert Duvall, Ben Stiller, and Jet Li.

To learn more about Michael, visit:

https://michaelgrecco.com/about/meet-michael

To learn more about Houston Money Week visit:

www.Houstonmoneyweek.org

 

http://www.cheatsheet.com/personal-finance/how-schools-can-improve-their-personal-finance-education.html/

Financial Advisor Magazine Articles:

http://www.fa-mag.com/news/advisors-stay-the-course-amid-monday-s-market-drop-22864.html?section=3 

http://www.fa-mag.com/news/on-it-s-80th-anniversaryadvisors-consider-social-security-s-impactfuture-22784.html?section=3

You can listen live by going to www.kpft.org and clicking on the HD3 tab.
You can also listen to this episode and others by podcast at:

http://directory.libsyn.com/shows/view/id/moneymatters

or

www.moneymatterspodcast.com

#KPFTHOUSTON

#HoustonMoneyWK

#Michaelgrecco

Direct download: 240.mp3
Category:general -- posted at: 1:25pm PDT
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Does your company throw around new ideas until one sounds just good enough to execute and scale to everyone?

In Start at the End, technology executive and behavioral scientist Matt Wallaert argues that the purpose of everything is behavior change. By starting with outcomes instead of processes, the most effective companies understand what people want to do and why they aren't already doing it, then build products and services to bridge the gap.

Wallaert is a behavioral psychologist who has led product design at organizations ranging from startups like Clover Health to industry leaders such as Microsoft. Whether dissecting the success behind Uber's ridesharing service or Flamin' Hot Cheetos, he underscores with clarity and humor how this approach can improve the way we work and live. 

To learn more about Matt, visit:

https://mattwallaert.com/about/

To learn more about Houston Money Week visit:

www.Houstonmoneyweek.org

 

http://www.cheatsheet.com/personal-finance/how-schools-can-improve-their-personal-finance-education.html/

Financial Advisor Magazine Articles:

http://www.fa-mag.com/news/advisors-stay-the-course-amid-monday-s-market-drop-22864.html?section=3 

http://www.fa-mag.com/news/on-it-s-80th-anniversaryadvisors-consider-social-security-s-impactfuture-22784.html?section=3

You can listen live by going to www.kpft.org and clicking on the HD3 tab.
You can also listen to this episode and others by podcast at:

http://directory.libsyn.com/shows/view/id/moneymatters

or

www.moneymatterspodcast.com

#KPFTHOUSTON

#HoustonMoneyWK

#mattwallaert

Direct download: 239.mp3
Category:general -- posted at: 1:14pm PDT
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How can you be the mom you want to be without walking away from your career and all you’ve worked so hard for? What if you could work part-time, continuing down your professional path, and actually spend quality time with family?

Suzanne Brown shares her expertise combined with detailed research and advice from other part-time working moms. In her award-winning book, Mompowerment: Insights from Successful Professional Part-time Working Moms Who Balance Career and Family, she recounts stories, advice, and insights from her own experience and more than 110 other professional part-time working moms to:
• empower you to think differently about career and work-life balance
• provide a how-to for transitioning your career model

Suzanne Brown is a part-time strategic marketing and business consultant, TEDx speaker, author, and avid international traveler. 
 
She has more than 12 years of experience at large marketing agencies. Suzanne started her entrepreneurial journey after having a con­sulting side business for 7 years while still working in Corporate America. As a consultant with her own clients, she had more flexibility and control over her schedule. 
 
Suzanne received her MBA in Marketing, BBA in Finance, and BA in Spanish from The University of Texas at Austin. Suzanne and her family live in Austin, Texas. 
 
Check out Suzanne's weekly blog at mompowerment.com or follow her onTwitter @mompowerment.

To learn more about Suzanne, visit:

https://mompowerment.com/home-page/about/

To learn more about Houston Money Week visit:

www.Houstonmoneyweek.org

 

http://www.cheatsheet.com/personal-finance/how-schools-can-improve-their-personal-finance-education.html/

Financial Advisor Magazine Articles:

http://www.fa-mag.com/news/advisors-stay-the-course-amid-monday-s-market-drop-22864.html?section=3 

http://www.fa-mag.com/news/on-it-s-80th-anniversaryadvisors-consider-social-security-s-impactfuture-22784.html?section=3

You can listen live by going to www.kpft.org and clicking on the HD3 tab.
You can also listen to this episode and others by podcast at:

http://directory.libsyn.com/shows/view/id/moneymatters

or

www.moneymatterspodcast.com

#KPFTHOUSTON

#HoustonMoneyWK

#Mompowerment

Direct download: 238.mp3
Category:Financial Literacy -- posted at: 11:51am PDT
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Are you disillusioned with politics influencing corporations you purchase goods from?

Goods Unite Us is a company designed to empower consumers by putting a "Goods Score" on companies to show much they are influenced by political donations. Each company’s Goods Score is calculated on a scale of -100 to +100. The higher the score, the more likely that purchases from the company or brand will lead to meaningful campaign finance reform.

Goods Unite Us was started by Abigail Wuest, who is a government attorney and former local politician. Abigail grew up in a very politically active family, and she cares deeply about fair and transparent elections. She has a B.A. from St. Olaf College and a J.D. from Vermont Law School. Abigail’s career has spanned numerous levels of the government, including at the local, state and federal levels. She’s worked as a White House intern, as an intern at the U.S. Environmental Protection Agency, in private law practice, and held elected office as a Dane County Board supervisor.

To learn more about Abigail, visit:

https://www.goodsuniteus.com/why-goods/#/

To learn more about Houston Money Week visit:

www.Houstonmoneyweek.org

 

http://www.cheatsheet.com/personal-finance/how-schools-can-improve-their-personal-finance-education.html/

Financial Advisor Magazine Articles:

http://www.fa-mag.com/news/advisors-stay-the-course-amid-monday-s-market-drop-22864.html?section=3 

http://www.fa-mag.com/news/on-it-s-80th-anniversaryadvisors-consider-social-security-s-impactfuture-22784.html?section=3

You can listen live by going to www.kpft.org and clicking on the HD3 tab.
You can also listen to this episode and others by podcast at:

http://directory.libsyn.com/shows/view/id/moneymatters

or

www.moneymatterspodcast.com

#KPFTHOUSTON

#HoustonMoneyWK

#AbigailWuest

Direct download: Episode_237.mp3
Category:general -- posted at: 3:32pm PDT
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