Episode 193: RWS Live!: From Tontines to ETFs: Exploring Innovative Retirement Solutions

In this conversation, Wade Pfau and Alex Murguia discuss retirement planning topics including market downturns, buffer assets, demographic trends, and emerging products like tontines and buffered ETFs. They highlight how historical market performance shapes future expectations and emphasize the role of strategic asset allocation in retirement income planning.

Takeaways

• Market downturns can last longer than five years, impacting retirement planning.


• Buffer assets can help retirees weather market downturns without selling at a loss.


• Demographic trends may influence market performance and interest rates in the future.


• Modern tontines could provide innovative solutions for retirement income.


• Combining safety for essential expenses with discretionary spending can optimize retirement income.


• Historical returns should not be the sole basis for future market assumptions.


• Buffered ETFs may serve as effective tools for risk diversification in high market valuation environments.


• Understanding the liquidity and terms of financial products is crucial for effective retirement planning.


• Technological advances may reshape traditional financial products like tontines.


• A diversified portfolio can help manage risks associated with market fluctuations.

Chapters

00:00 Introduction and Technical Setup

03:58 Market Downturns and Retirement Planning

12:59 Buffer Assets in Retirement

19:09 Tontines and Modern Financial Solutions

23:06 Combining Safety and Growth in Retirement Income

29:07 Buffered ETFs and Risk Diversification

33:31 Retirement Income Perspectives

34:06 Market Valuations and Investment Strategies

Links

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The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”