In this post we meet with two Australian researchers whose study of retirement income risks can be applied to client portfolios across the globe.
Dr. Michael Drew, Professor of Finance at Griffith Business School, and Adam Walk, Senior Research Fellow at Griffith Business School in South East Queensland, have been researching challenges of creating income from a volatile portfolio account value since Australia’s move to an employer-mandated defined-contribution system. Australian retirees face a similar challenge as American retirees who are increasingly approaching retirement without a defined-benefit plan – but with a significant accumulation in a 401(k) plan. In the two following video interviews, they discuss how earning negative returns at the wrong time can undermine a retirement income plan, as well as strategies that can be used to diminish this risk.
In “How Can Market Decline Affect Retirement Security,” Drew and Walk discuss sequencing risk in retirement income planning. In “Asset Allocation Strategies for Retirement Security,” Drew and Walk address four main tactics to navigating asset allocation within the retirement risk zone discussed in their article “The Role of Asset Allocation in Navigating the Retirement Risk Zone.”
Read more about the videos on The American College’s blog.