[andrewf]

Manulife is doing some interesting research into this, they've got some NY PHd working on 'product allocation' instead of asset allocation. I touched on it briefly, it was interesting.

The idea is that upon retirement the goal is to maximize our return while minimizing our risk. On two extremes for example we invest completely in an annuity or equities. One gives us much lower return for high guarantees, the other potentially higher returns for lower guarantees.

They're trying to put some science and numbers on mixing product types (i.e. annuities, mutual funds) rather than asset types to achieve the right blend for individuals. No, I didn't read the science . Probably a Manulife person could give more details, they have calculators and such to do this.

Waaaaait a second. I can retire on less money, but only if I do so someplace tropical? That's not much of tough sell .

I don't know if it's right or not, I do know it's an interesting idea. Maybe get some science injected into the voodoo that is asset allocation.

To maintain your Canadian health coverage you need to live here for 6 months plus a day each year. This (along with OAS) are the reasons snowbirds come back.

 

[andrewf]

You need to bridge your lifestyle between when you retire and when you start drawing CPP and OAS benefits. That is a very important consideration.