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White paper — The Retirement Conundrum: Untying the Gordian Knot

(full ver­sion)

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Swan Research — Innovative Thought Leadership

Investors enter­ing retire­ment face an array of unique chal­lenges that col­lec­tive­ly seem daunt­ing, the­se include:

  • The dimin­ished role of pub­lic and pri­vate pen­sions and the greater impor­tance of “do it your­self” defined con­tri­bu­tion and IRA plans
  • Increased longevi­ty risk as peo­ple are liv­ing longer than ever before
  • Bond yields at his­toric lows, threat­en­ing both the income and cap­i­tal preser­va­tion roles of fixed income
  • Stock mar­kets at all-time highs while the glob­al econ­o­my is slow­ing
  • The risk of with­draw­ing from baby boomers’ retire­ment accounts dur­ing bear mar­kets in bonds and/or stocks
  • The risk investors pose to them­selves bypan­ic-sell­ing dur­ing mar­ket down­turns

How­ev­er, we at Swan Glob­al Invest­ments would argue that the retire­ment chal­lenge is also a pro­found oppor­tu­ni­ty.

The impor­tance of hav­ing intel­li­gent, for­ward-think­ing finan­cial advi­sors direct­ly solv­ing this sit­u­a­tion is more impor­tant than ever. One-click solu­tions like tar­get date funds or robo-advi­sors will not solve the retire­ment conun­drum. Fol­low­ing the same cook­ie-cut­ter, 60/40 solu­tions out­lined in text­books will not solve the retire­ment prob­lem. We believe that only bold, for­ward-think­ing solu­tions that direct­ly address the biggest risks to the retired baby boomers will solve the prob­lem. And more­over, we believe the rewards to those finan­cial advi­sors who suc­cess­ful­ly solve this prob­lem will be immense.

An exec­u­tive sum­ma­ry of this white paper is also avail­able.