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Wade Pfau
Safety-First Retirement Planning: An Integrated Approach for a Worry-Free Retirement
Wade Pfau, author

Adult; Business & Personal Finance; (Market)

When we properly consider the range of risks introduced after retirement, integrated strategies with insurance and investments support more efficient retirement. Safety-first retirement planning helps to meet financial goals with less worry. I explains how to evaluate different insurance options and implement these solutions into a retirement plan.
Pfau, a professor of retirement income at the American College of Financial Services and a principal and director for McLean Asset Management, switches topics from the riskier investment approach of his first book (How Much Can I Spend in Retirement? A Guide to Investment-Based Retirement Strategies) to more fiscally conservative strategies in this information-rich, jargon-heavy guide. For retirees who are worried about making their assets last for decades and hold up during times of economic uncertainty, probability-based strategies can become excessively stressful, the author counsels. An alternative is a “safety-first” approach that integrates investments with insurance. Pfau provides a compelling reason for taking this option: the risk pooling of insurance requires retirees to put in less money up front, as they no longer need to plan in anticipation of the worst-case scenario.

Pfau exhaustively and expertly explores all investment possibilities, including fixed-income assets; stocks and diversified investment portfolios; income, variable, and fixed income annuities; and life insurance. He discusses fitting income annuities into a financial plan and planning to leave a financial legacy for loved ones. He also warns of the dangers of loss aversion (fearing a loss more than wanting to make gains), overconfidence, and hindsight bias.

Readers with finance-phobia may be intimidated by Pfau’s dry, academic prose (“Low-volatility assets are generally viewed as less risky, but this may not be the case when the objective is to sustain spending over a long time horizon”) and deep dives into complicated investment options. However, his advice is both comprehensive and logical, and the liberal use of well-designed charts and real-world situations aid in comprehension. This sensible nuts-and-bolts retirement planning guide will satisfy readers interested in exploring their long-term financial options.

Takeaway: Readers looking for peace of mind during their golden years will find Pfau’s retirement planning guidance valuable.

Great for fans of Dave Ramsey, Jane Bryant Quinn.

Production grades
Cover: A
Design and typography: A
Illustrations: A
Editing: A
Marketing copy: A