According to this article, financial advisers and wealth managers are realizing that they are in the early stages of a huge paradigm shift. Baby boomers are less concerned about growing their retirement nest egg and more concerned about preserving what they have. More particularly, they want to be told what they can do to avoid outliving their money. If their adviser doesn’t have a good plan for that, the client will find someone else who does.
No doubt some advisers will move their clients into annuities. If so, let’s at least hope they will be indexed to inflation. Otherwise, they may not outlive their income, but they surely can outlive their spending power. Inflation is a deadly sure killer of spending power.
You don’t need a financial adviser to tell you how to construct a plan that will provide retirement income that is both guaranteed and inflation protected. Frankly, there aren’t a lot of options for providing that income. The most affordable option is an income plan constructed from TIPS and I-Bonds. That’s the direction I’m heading. How about you?