Oct. 17, 2022 — What is the future of retirement? Learn all about it on this month’s episode of Money Mountaineering with Actuary Peter Neuwirth
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Today on the Money Mountaineering Show
From reverse mortgages to leaving a legacy, learn how to generate lifetime income with Barry H. Sacks Ph.D, who earned his Ph.D. in semiconductor physics from M.I.T., then taught at U.C. Berkeley.
Monday Morning Magic from Inkandescent® PR + Publishing Co. — Who doesn’t want to retire in style — and ensure that you have enough money saved if you live a long, healthy life? It can be tricky and sometimes risky, as we learn on this month’s episode of Money Mountaineering with actuary and author Peter Neuwirth on the Inkandescent Radio Network.
Today’s Topic: From reverse mortgages to leaving a legacy, learn how to generate lifetime income www.peterneuwirth.com
Meet Pete’s guest: Barry H. Sacks earned his Ph.D. in semiconductor physics from M.I.T., then taught at U.C. Berkeley. He earned a J.D. from Harvard Law School and is a Certified Specialist in Taxation Law from the California Board of Legal Specialization. After spending 35 years as an ERISA attorney specializing in qualified retirement plans, he used his breadth of skills to discover a role for a reverse mortgage to help make a retirement portfolio last longer. Barry now has a law practice providing exceptional services to tax professionals in the area of “Offers in Compromise” for retirees living on 401(k) accounts or securities portfolios. With his brother, Professor Stephen Sacks, Barry published the pioneering research paper modeling a strategy that uses reverse mortgage credit lines to mitigate the effects of adverse investment returns in retirement accounts (Journal of Financial Planning, February 2012). A sequel to this paper expanding the range of applications of the strategy was co-authored by Peter Neuwirth, F.S.A., and Stephen Sacks. Click here to read all about it.
Some of the topics Pete and Barry discuss in the interview:
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Tell us about your decision to leave your tenure track position as Berkeley physics professor in Quantum Mechanics to become an ERISA lawyer. You are one of the best tax lawyers I know; was that a tough decision? Also, talk a bit about how we met when you were an ERISA lawyer and I was the actuary for the San Francisco Symphony.
- How did you develop your groundbreaking 2012 paper that replaced the 4% rule with the “coordinated strategy” involving a reverse mortgage, which was reported on by Forbes magazine and other noteworthy publication
- Let’s talk about how your excitement got me interested in the subject and how we started working together to expand the applicability of reverse mortgages, and our joint 2017 paper on the topic
- Over the last few years, we have extended the concept further to look at the entire decumulation problem, including Legacy and components of net worth throughout retirement. This resulted in our 2022 paper published by the Conference of Consulting Actuaries. Please talk about this research and why more people need to understand it.
- Our current research takes a deeper and more detailed look at the decumulation problem and its four unique risks below. While none of these are present to any material degree during accumulation; all four need to be considered by a new retiree:
- Sequence of Returns
- Unpredictable Contingent Expense (i.e., Spikes)
- Longevity
- Taxes
Learn more about actuary and author Peter Neuwirth: www.PeterNeuwirth.com
- Listen to Pete’s podcasts on PeterNeuwirthRadio.com
- Watch all of the video episodes on YouTube: www.PeterNeuwirth.tv
Until next Monday: May you plan ahead wisely while living each and every moment of your beautiful life. — Hope Katz Gibbs, founder and president, Inkandescent® Inc. Inkandescent.us
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