Elyse Foster, CFP® was quoted in the December/January issue of Morningstar Advisor, in an article on retirement planning that asked “What strategies do you use to help retirees hedge against longevity risk?”
We plan for cash needs through age 95, employ a slightly higher inflation rate and a conservative growth rate. We also include a special allotment for health-care needs above and beyond current spending needs. Our portfolios contain a good portion of equities balanced with alternatives such as real estate, natural gas holdings, and commodities and gold. We employ fixed annuities as well. Cash and short-term investments are set aside to meet income needs for at least two years out. – EF
The full article is available online from Morningstar.