The trouble with a retirement plan based on your own life expectancy estimates, writes Moshe A. Milevsky, is that life is random. No one can truly guess how long they'll live, so this method is inherently risky. For another approach, try consulting an equation that's been around since the early 19th century. Benjamin Gompertz was the first to use mortality tables to extract a formal law of mortality. His intense study revealed that a person's probability of dying in the next year increases by approximately 9% to 10% per year, from adulthood until old age. From a mathematical point of view, assuming this line and working backwards, if you start with a species whose “chances of dying” increases by (say) 9% per year, you can invert the relationship and obtain the probability you will survive to any age. That is Gompertz’s equation, and why it is named after him.
ThinkAdvisor's TechCenter is an educational resource designed to give you a competitive edge by keeping you abreast of new tech innovations and need-to-know information that can be applied to your business.
Your resource for news, research and analysis to help you deliver more effective outcomes to your clients.
Use this fact sheet to explain 3 key differences between Life Insurance and Roth IRAs to your clients.
The Perfect First Appointment from a $30 Million Producer
Tools to help you survive in the post-DOL rule world.
Jul 19, 2017
The first compliance deadline for the DOL’s fiduciary rule has kicked in … are you in compliance?
Jun 29, 2017
Join this complimentary webcast to dive into the imperative demand benefits professionals, employers, and HR representatives must meet when it comes to customizing benefits packages,...
Jun 28, 2017
Clients want to discuss health care costs in retirement. We can help break down options and costs so your clients can better prepare.