Allocation During Retirement: Adding Annuities to the Mix

    by William Reichenstein

    Allocation During Retirement: Adding Annuities To The Mix Splash image

    A considerable amount of research has been devoted to the topic of asset allocation and the role it plays in retiree portfolios.

    A retiree’s portfolio is not quite the same as the portfolio of an individual saving for retirement, because typically a retiree is withdrawing from his portfolio. The focus of the research has been how various asset allocation strategies can affect those withdrawals—specifically, which mixes will ensure a withdrawal rate that is both high but also “sustainable” over the retiree’s lifetime.

    Until recently, most of the research has centered on the basic asset categories of cash, bonds and stock, and some of the more popular subcategories—for instance, small-cap stocks, value stocks, etc.

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    → William Reichenstein