9 Comments

Loved this! Thanks for doing this Lawrence. BTW - my daughter went to BU! Go Terriers!

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Looks good. I have the following "problem" for MaxFi: a/ taking lump sum from Cash Pension and investing in fixed income w/ low risk (all IRA) vs. b/ taking fix payment annuity (Joined 100%) for > 30 yrs . The annuity grows @ 3.85%/ann. Pros: if I can find a fixed income @ 30 yrs for > 4% (US Treasuries?) or TIPS (returning > 4% ? ) I should be better off - since expecting the company to stay in business for > 30 yrs carries a serious risk. Also - will handle better the next several yrs with unpredictable inflation rates. Cons: Fixed Income will fluctuate at times. Assumption: the investor is disciplined and will stick to the plan over 30 yrs. Does need immediately the cash flow.

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Thanks for the data and the thoughts.

Correction: "Jamie Dimon", not "Jaime Diamond"

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His horizon is 37 yrs , and not 47.

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"Jerry is single and a 63 year-old retired Pennsylvanian. "

How much can Jerry spend on this living standard and keep on spending it right through age 100, his maximum age of life? Bear in mind, Jerry’s planning horizon is 47 years,

Why isn't Jerry's planning Horizon 37 years?

"JPMorgan’s, Jaime Diamond" you mean Dimon?

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