Ray Lucia, University Of Missouri, Scientist discussed on The Ray Lucia Show
This is the Ray Lucia show we've been talking about the sequence risk and how critically important is to get this one, right? Referring to the when to retire decision. The impact on retirement security and workforce management. It's one of the reasons why I've authored three different books on retirement. And I'm going off author another one I'm actually written a good part of it. But I haven't had time to fine. Tune it. But a lot of it focuses on this whole idea of when you retire. And frankly, it's luck of the draw when you were born kind of dictates when you retire. But this prudential study actually done by the university of Missouri. And incidentally, one an insurance company is paying for studies like this. They're not doing it to try to get more business. They're doing it. Because they they don't want people to think it's their own study for getting more business. If you know what I mean? I mean, it would seem to biased if they did it. I'm sure the prudential people have in house people that could do this study, but they farm out in pay. So that the study can be objective. So I'm giving you objective numbers. Even though I think what prudential would like out of this is to inform people that the sequence risk could be better managed by something like a life annuity. They don't say that in this study or this report, but I suspect that's their so-called vested interest. But it does. Doesn't take a rocket scientist to figure that one out? And I think there's been plenty of academic research to support that kind of a recommendation, and if you don't believe me. Send me an Email, and I'll be happy to give you not one not two, but probably ten links to highly sophisticated finance professors and economists that say so. But this is important because we've had more than three years of up returns. And what they're saying is when you have more than three years in a row of up returns, the chances of you facing negative returns in the ensuing years early in retirement are very very high even though that's not been the case in the recent past. But you have to make the assumption that the returns are going to eventually go negative. So we all know, what dollar cost averaging is dollar cost averaging occurs. When you make frequent call it monthly purchases of shares of stock or mutual funds. Like you do in a 4._0._1._K. And the example, I like to do is let's say you're.