Morningstar Advisor - December 2010/January 2011 - (Page 48)

Morningstar Conversation On the Lookout for Guaranteed Income Streams By Christine Benz Controlling longevity risk is achievable, but clients have to decide what they’re willing to give up to get it. Choosing an approach that ensures clients won’t outlive their retirement savings is no easy task. To manage longevity risk, advisors and their clients must weigh an incredible number of factors, including, ultimately, one that is unknowable: how long a person is going to live. The financial industry, however, is on the case, rolling out products and innovations every year that offer new ways to guarantee investors a steady stream of retirement income. To get a handle on longevity risk and the best ways to control it, we asked three leading experts in the field to discuss the challenges advisors face in finding an optimal solution. Moshe Milevsky is a finance professor at the Schulich School of Business at York University in Toronto and author of Are You a Stock or a Bond? Create Your Own Pension Plan for a Secure Financial Future (FT Press, 2008). John Ameriks is a leading researcher at Vanguard, where he heads the firm’s Investment Counseling & Research group. Thomas Idzorek is chief investment officer and director of research at Ibbotson Associates. Our conversation took place Oct. 18 and has been edited for clarity and length. Christine Benz: I’d like to start by talking about what you think belongs in investors’ tool kits when it comes to managing the risk that retirees will outlive their assets. 48 Morningstar Advisor December/January 2011

Table of Contents for the Digital Edition of Morningstar Advisor - December 2010/January 2011

Morningstar Advisor - December 2010/january 2011
New on
Letter From the Editor
What Strategies Do You Use to Help Retirees Hedge Against Longevity Risk?
Investment Briefs
Four Picks for the Present
Scaring the Swiss
Tech Is the Apple of Managers’ Eyes
How to Read an Sec Filing
A Strategy That Loves Performance Chasers
Things Fall Apart, Even in Industrials
A Future in Questions, Not Answers
Research Over Chocolates
Creating Portfolios That Confront Retirement’s Risks
Building in-Retirement Portfolios to Last
On the Lookout for Guaranteed Income Streams
What Fires Up Mairs & Power
All Aboard!
Aiming at Alternatives
Stuff Your Stocking with Out-of-Favor Bargains
Stable, High Yields (No Bonds Included)
Mutural Fund Analyst Picks
50 Most Popular ETFs
Undervalued Stocks with Wide Moats
Twelve Bee, Huh?

Morningstar Advisor - December 2010/January 2011