By Al Emid  

Toronto – Canada





The Glamourous Life of an Author




Al Emid has worked in communicating ideas and concepts since beginning his career at an educational television network in 1967. He is the co-author and author of several financial books, most recently The Emid Report on Volatility 2019 available on all major book sites.




Chapter 2


Be Careful About Living Longer




Here’s the good news: we are all living longer.  We know we can’t smoke.  We know we should only consume alcohol in moderation.  We know we need to exercise regularly and eat carefully.  And we know that huge medical advances have prolonged our lives.  Taken together, these and other factors mean that looking to one’s family history to estimate one’s life-expectancy has limited usefulness as we can expect to outlive our forebears.


At the same time, many of us are redefining the meaning of retirement. Those commercials on television where the beautifully tanned man and woman, clad in white linen clothes dance on a sunny beach, apparently without a care in the world, are very seductive when broadcast during the winter months.


Now here is the bad news: I first encountered the concept of longevity risk about ten years ago.  Put simply, for individuals, it refers to the possibility of outliving resources gathered during income-earning years.  For insurance companies and defined pensions, it refers to the possibility that the increased life expectancy can result in payout levels higher than what a company or fund originally projected.  


Those fortunate enough to have defined-benefit plans or annuities with guaranteed lifetime benefits get a real retirement break. Outside of those products, the first step for the individual investor is a heart-to-heart talk with a licensed financial advisor.  The key component here is a calculation of how much the individual can withdraw after allowing for taxes and a reasonable age expectation from all investment plans administered by the advisor.  That’s the first question and I will look at others in future chapters.


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