Are You a Stock or a Bond? A Moshe Milevsky Analysis


The title of my post this week comes from Professor Moshe Milevsky for the second time.  I’m giving you all a break from reading and including a link to this video where the good professor talks again about the difference between personal and financial capital.

Moshe Milevsky Annuities Analysis

Mr. Milevsky makes is very apparent that the amount of risk a person takes with financial assets should be inversely related to the type of risk associated with an individual’s personal capital.

If your income is unstable, your invested assets should be allocated conservatively.  Also, as your number of earning years decreases so should the level of risk on your financial assets.

Milevsky and I share these beliefs and I enjoy seeing someone of his stature provide evidence of the need for conservative retirement planning.

Annuities work well within this planning framework.  Each of you here understands that to a certain degree, which is why I am working to clarify the need for and use of annuities in retirement income planning.

Revisit the available reports and feel free to call or email at your convenience with specific questions you may have.

If you are not a member, sign up now for all the free information that will make the process of retirement income planning much more simple.

Please follow this link to see Dr. Milevsky’s video.

Thinking Smarter About Risk- Moshe Milevsky on Annuities


This article written by Dr. Moshe A. Milevsky in Monday’s Wall Street Journal is one all members and visitors of AnnuityStraightTalk should read.  It deals with the management of risk according to a set of factors rarely considered in financial planning circles.

The article discusses the difference between personal and financial capital.  Your personal capital reflects your future earning power while financial capital is comprised of the assets you have accumulated over your career.

Younger workers hold most assets in the form of personal capital while pre-retirees tend to have more financial capital.  Both forms have associated risks and proper financial planning can not be done without considering the two in conjunction.

If your personal income is negatively affected by downturns in the market then financial assets should be conservatively invested.  The closer a person comes to retirement, the more closely those assets should be guarded because personal capital decreases with the number of working years remaining.

If your financial capital needs protection, how do you plan to do it?  When considering safe investment vehicles, do annuities fit into your retirement picture?  Browse my site for information on how annuities can help protect your financial capital.

I highly recommend reading Dr. Milevsky’s article.

Find the article here.