Interesting paper by Wade Pfau,
One grabber from the paper--
This isn't the theme of the paper, of course.As stated, the January 2013 real bond-yield was -1.4%. It would seem ethically suspect (and financially adverse) for an investment advisor to charge a 1% annual management fee on a large portion of a retiree’s retirement portfolio that is yielding -1.4% in real return before adding the drag of a fee.
https://www.google.com/url?sa=t&rct=j&q ... GU&cad=rjaThe conclusions of Pfau’s last two probability graphs (Exhibit H and I) methodically answered this question, as the stock/real FIA (fixed income annuity with income rider) allocation’s performance was admirable, if not noticeably superior, when compared to the other alternatives.
Paul