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Monday 26 June 2017
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What She Said! with Christine Bentley & Kate Wheeler on The Jewel Radio Network.

Pensionize Your Nest Egg: How to Use Product Allocation to Create Guaranteed Income for Life

golden eggs in nest

You may think that saving up your nest egg is the most challenging part of planning for retirement – but what if turning that nest egg into predictable, lifetime income is an even bigger hurdle?

The continued decline of traditional defined benefit pension plans, coupled with uncertain economic markets and an explosion of new investing products and providers mean that more than ever, Canadians are now faced with the need to create their own retirement income plans and solutions.

That’s where Pensionize Your Nest Egg steps in.

The co-authors, a professor of finance and a practicing financial planner, have created a resource designed to carefully explore the new risks that retirees face once they “hang up their lunch buckets” —and to provide step-by-step instructions on how to harness the power of product allocation to design a personal pension income in retirement.

What is “product allocation?” It can be thought of like the retirement equivalent of “asset allocation,” which is an investment strategy that attempts to balance risk and reward by adjusting the percentage of each asset in an investment portfolio according to the investor’s preferences, goals and timeframe.

In retirement, product allocation is the process of spreading or allocating financial resources to different types of financial and insurance products in accordance with a retiree’s preferences and goals, to produce income that will be sustainable over the retirement timeframe, as long as you live.

The recently-published 2015 edition of Pensionize Your Nest Egg builds on the first edition, released in 2010, and covers retirees in the U.S., U.K., Australia and New Zealand in addition to Canada.

On Tuesday, May 5, Pensionize co-author Alexandra Macqueen will be joining WhatSheSaid radio to discuss how the book can help individual readers end retirement uncertainty and confidently allocate their savings to their own personal income plan.

By Alexandra C Macqueen
Financial Planner; CFP & co-author of Pensionize Your Nest Egg

Follow Alexandra Macqueen on twitter