Breakout Session
Level of Complexity: Advanced
Wade Pfau, PhD, CFA
Professor
The American College for Financial Services
This presentation goes into greater depth about two retirement income approaches: using an aggressive investment portfolio to seek greater returns through the risk premium, and using an integrated strategy for investments with life insurance and annuities to seek greater returns through risk pooling. My research finds that risk pooling tends to be underappreciated as a unique source of returns that is unavailable for an investment portfolio in which the retiree aims to self-manage longevity and market risk through conservative spending.