Appendix: Additional References and Notes

For further information about retirement income planning, investing your human capital, and some of the other ideas presented in this book, please visit my personal website at www.MosheMilevsky.com or see some of the following references. Note that I have been careful to pick articles and books that are relatively accessible (that is, free of equations).

Aaron, Henry J., editor (1999), Behavioral Dimensions of Retirement Economics, Brookings Institution Press, Washington.

Ameriks, John, R. Veres and M. J. Warshawsky (2001), “Making Retirement Income Last a Lifetime,” Journal of Financial Planning, December, Article 6 (www.journalfp.net).

Baldwin, Ben G. (1994), The New Life Insurance Investment Advisor (revised edition), McGraw-Hill, New York.

Bazerman, Max H. (1999), Smart Money Decisions: Why You Do What You Do with Money (And How to Change for the Better), John Wiley and Sons, Inc.

Becker, Gary S. (1993), Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, 3rd edition, University of Chicago Press.

Belsky, Gary and Tom Gilovich (1999), Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the New Science of Behavioral Economics, Simon & Schuster, New York.

Benartzi, Shlomo and Richard H. Thaler (2007), “Heuristics and Biases in Retirement Savings Behavior,” The Journal of Economic Perspectives, Vol. 21(3): 81–104.

Bengen, W. P. (2001), “Conserving Client Portfolios During Retirement,” Journal of Financial Planning, May, Article 14, (www.journalfp.net).

Bernstein, Peter L. (1992), Capital Ideas: The Improbable Origins of Modern Wall Street, The Free Press, New York.

Bodie, Zvi, Robert C. Merton, and William F. Samuelson (1992), “Labor Supply Flexibility and Portfolio Choice in a Life Cycle Model,” Journal of Economic Dynamics and Control, Vol. 16(3): 327–449.

Bodie, Zvi and Michael J. Clowes (2003), Worry-Free Investing: A Safe Approach to Achieving Your Lifetime Financial Goals, Financial Times/Prentice Hall Books.

Brown, Jeff R., Olivia S. Mitchell, James M. Poterba, and Mark J. Warshawsky (2001), The Role of Annuity Markets in Financing Retirement, The MIT Press, Cambridge, Massachusetts.

Campbell, John Y. and Martin Feldstein, editors (2001), Risk Aspects of Investment-Based Social Security Reform, National Bureau of Economic Research, University of Chicago Press.

Campbell, John and Luis Viceira (2002), Strategic Asset Allocation: Portfolio Choice for Long-term Investors, Oxford University Press, UK.

Chen, Peng and Moshe A. Milevsky (2003), “Merging Asset Allocation and Longevity Insurance: An Optimal Perspective on Payout Annuities,” Journal of Financial Planning, June, pp. 64–72.

Clark, Robert L., Richard V. Burkhauser, Marilyn Moon, Joseph F. Quinn, and Timothy M. Smeeding (2004), The Economics of an Aging Society, Blackwell Publishing, Malden, Massachusetts.

Eisenberg, Lee (2006), The Number: A Completely Different Way to Think About the Rest of Your Life, Simon & Schuster Adult Publishing Group, New York.

Evensky, Harold and Deena B. Katz, editors (2004), The Investment Think Tank: Theory, Strategy and Practice for Advisors, Bloomberg Press, Princeton.

Evensky, Harold and Deena B. Katz, editors (2006), Retirement Income Redesigned: Master Plans for Distribution, Bloomberg Press, Princeton.

Feinberg, Kenneth R. (2005), What is Life Worth? The Unprecedented Effort to Compensate the Victims of 9/11, PublicAffairs.

Goetzmann, William N. (1993), “The Single Family Home in the Investment Portfolio,” Journal of Real Estate Finance and Economics, Vol. 6: 201–222.

Graham, Benjamin (2003), The Intelligent Investor (revised edition), with New Commentary by Jason Zweig, HarperCollins.

Ho, Kwok, Moshe A. Milevsky, and Chris Robinson (1994), “How to Avoid Outliving Your Money,” Canadian Investment Review, Vol. 7(3): 35–38.

Ibbotson, Roger, Moshe A. Milevsky, Peng Chen, and Kevin Zhu (2007), Lifetime Financial Advice: Human Capital, Asset Allocation, and Insurance, research monograph, CFA Institute, April 2007.

Jagannathan, Ravi and Narayan R. Kocherlakota (1996), “Why Should Older People Invest Less in Stocks Than Younger People?” Federal Reserve Bank of Minneapolis Quarterly Review, Summer 1996, Vol. 20(3): 11–23.

Kotlikoff, Laurence J. and Scott Burns (2004), The Coming Generational Storm: What You Need to Know About America’s Economic Future, The MIT Press, Cambridge, USA.

Lee, Hye K. and Sherman Hanna (1995), “Investment Portfolios and Human Wealth,” Financial Counseling and Planning, Vol. 6: 147–152.

Lleras, Miguel P. (2004), Investing in Human Capital: A Capital Markets Approach to Student Funding, Cambridge University Press, UK.

Lowenstein, Roger (2005), “We Regret to Inform You That You No Longer Have a Pension,” New York Times Magazine, October 30, Section 6.

Malkiel, Burton G. (2003), A Random Walk Down Wall Street: The Time Tested Strategy for Successful Investing, W.W. Norton and Company, New York.

Markowitz, Harry M. (1991), “Individual Versus Institutional Investing,” Financial Services Review, Vol. 1(1): 9–22.

Milevsky, Moshe A. (2006), The Calculus of Retirement Income: Financial Models for Pension Annuities and Life Insurance, March 2006, Cambridge University Press.

Milevsky, Moshe A. (2012), The 7 Most Important Equations for Your Retirement: The Fascinating People and Ideas Behind Planning Your Retirement Income, Wiley & Sons, Toronto.

Milevsky, Moshe A. and Aron A. Gottesman (2004), Insurance Logic: Risk Management Strategies for Canadians, 2nd Edition, Captus Press, Toronto.

Milevsky, Moshe A. and Vladyslav Kyrychenko (2008), “Portfolio Choice with Puts: Evidence from Variable Annuities,” Financial Analysts Journal, Vol. 64, No. 3.

Milevsky, Moshe A. and Steven Posner (2001), “The Titanic Option: Valuation of Guaranteed Minimum Death Benefits in Variable Annuities and Mutual Funds,” Journal of Risk and Insurance, Vol. 68(1): 55–79.

Milevsky, Moshe A. and Thomas S. Salisbury (2006), “Financial Valuation of Guaranteed Minimum Withdrawal Benefits,” Insurance: Mathematics and Economics, Vol. 38(1): 21–38.

Milevsky, Moshe A. and Keke Song (2010), “Do Markets Like Frozen DB Plans: An Event Study,” Journal of Risk and Insurance, Vol 77, No.4, 893–909.

Mitchell, Olivia and Kent Smetters, editors (2003), The Pension Challenge: Risk Transfers and Retirement Income Security, Oxford University Press, Oxford, UK.

Modigliani, Franco (1986), “Life Cycle, Individual Thrift and the Wealth of Nations,” The American Economic Review, Vol. 76(3): 297–313.

Munnell, Alicia and Annika Sunden (2003), Coming Up Short: The Challenge of 401(k) Plans, Brookings Institution Press.

Olshansky, Jay and Bruce A. Carnes (2001), The Quest for Immortality: Science at the Frontiers of Aging, W.W. Norton & Company, New York.

Ostaszewski, K. (2003), “Is Life Insurance a Human Capital Derivatives Business?” Journal of Insurance Issues, Vol. 26(1): 1–14.

Paulson, Henry M. (2010), On the Brink: Inside the Race to Stop the Collapse of the Global Financial System, Business Plus, New York.

Reichenstein, William and Dovalee Dorsett (1995), Time Diversification Revisited, research monograph, CFA Institute, February 1995.

Salsbury, Gregory (2006), But What if I Live? The American Retirement Crisis, The National Underwriter Company, Cincinnati, Ohio.

Siegel, Jeremy J. (2002), Stocks for the Long Run: The Definitive Guide to Financial Market Returns and Long-Term Investment Strategies (3rd edition), McGraw-Hill, New York.

Sorkin, Andrew R. (2009), Too Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save the Financial System and Themselves, Viking Penguin, New York.

Stevens, Ann H., Douglas L. Miller, Marianne Page, and Mateusz Filipski, (2012), “Why Do More People Die During Economic Expansions?” Center for Retirement Research at Boston College, No. 12-8.

Swensen, David F. (2005), Unconventional Success: A Fundamental Approach to Personal Investment, Free Press, Simon & Schuster, New York.

Taleb, Nassim N. (2001), Fooled By Randomness: The Hidden Role of Chance in the Markets and in Life, Texere, New York.

Towers, Watson, (2010), “Prevalence of Retirement Plans by Type in the Fortune 100,” Insider, 20(6).

The Oldest Stage of Age

How old age comes and happens,

Shall I tell you? Here I go.

Your hair grows white and grey,

Oh so pretty shall I say.

A stick molds in your hand,

It’s what I call a wooden cane.

Some cotton grows from your chin,

And your knees begin to shrink and shake,

Until a grandma dwarf begins to take your place.

First stage your teeth grow cavities,

And then they all come out,

Just wait until the doctor cries to make all of them false.

One day you are too short,

And you can not drive to work.

So your boss may come and tell you,

Get your pension stay at home.

Don’t feel bad if this doesn’t happen to you,

One day you will meet someone who it happened to.

—Dahlia D. Milevsky, 2004, Age 10