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Episode 7

Save, save, save – that’s the retirement mantra. But then do you know how to draw down from your pot of money so that you can enjoy Life Two? Relatively little attention has been devoted to this logical conclusion, also known as decumulation. When you have no idea how long you’re going to live, how do you determine the sustainable rate at which to withdraw your money? We sit down with one of the world’s pioneers in this field, Moshe Milevsky (finance professor at York University’s Schulich School of Business), describing the sensible and the less than sensible practices he has encountered. Also, you don’t have to do this alone – later in the show, we discuss what to say with financial professionals and how to share your Life Two plans with those close to you.

This interview was recorded in the summer of 2019.

00:00 | Opening
01:20 | Intro to Moshe Milevsky: what led him to the topic of retirement
05:20 | Retirement is much more than a mathematical problem
09:30 | Chronological and biological age
16:00 | How to attract people’s attention to biological age
18:50 | How to think if your biological age is young
20:30 | Don’t pick an all-or-nothing retirement date
24:10 | Put your financial life on autopilot
29:10 | Efficient investments: annuities are important
32:30 | When insurance is relevant
39:50 | Lump sums and the income they generate
44:50 | Automation (or not) in decumulation
48:50 | How is your advisor compensated?
51:20 | Moshe’s thoughts on his future
53:20 | Don’s personal touch: Impact of biological age; income rather than assets; safety and growth; autopilot; professional compensation

1:05:14 | End

Music: “The Zeppelin” by Blue Dot Sessions and “Upbeat Party” by Scott Holmes

From the Free Music Archive
CC BY NCTo purchase Don Ezra’s book, visit donezra.com.