055: How to Navigate The Changing Retirement Landscape with David Blanchett

Lots of retirement research comes from people who are trying to sell you products, but David Blanchett is not that kind of researcher. A CFP, CFA, and PhD, David is Adjunct Professor of wealth management at The American College of Financial Services, a leading contributor to the Wealth Management Certified Professional® (WMCP®) designation program, and the head of retirement research for Morningstar Investment Management, LLC.

For his authentic, impartial research, David has been called one of the brightest minds in financial planning by Money. He made InvestmentNews’ inaugural 40 under 40 list in 2014 and has had his work featured in the New York Times, PLANSPONSOR, and the Wall Street Journal, among many others.

I’ve been following David’s research and sharing it with colleagues and clients for years. Today, he joins the podcast to discuss the uncertainties that can set a financial plan awry, how to build a plan to protect you from the worst case scenario, and why changes in life expectancy have done more to reshape retirement planning than anything else in recent American history.

In this podcast interview, you’ll learn:

  • Why people who are about to retire are so concerned about inflation – and how financial planners and pre-retirees should incorporate inflation into their plans.
  • Why healthcare shocks – and not healthcare costs – are the problem – and why there isn’t an easy way to hedge the risk of healthcare costs in retirement.
  • The importance of saving more – and why market outcomes are far less important to plan for than potentially having to retire several years before you plan to.
  • The reason David doesn’t completely hate annuities – and why annuities have gotten such a bad name.
  • Why David believes that many active investments are actually passive ones – and the importance of knowing what you’re buying and why you’re buying it.
  • The reason David said Roth 401(k)s are bad for so many retirees – and why he now recommends a mixture of traditional and Roth assets for most people.

Inspiring Quotes

“I think figuring out what that next step means and how you’re going to spend it is incredibly important. It’s worth thinking about for many, many years.” – David Blanchett

Interview Resources

Estimating the True Cost of Retirement
The Retirement Mirage


Disclosure:
Morningstar Investment Management LLC is a registered investment adviser and subsidiary of Morningstar, Inc. Opinions expressed are as of the current date; such opinions are subject to change without notice. Morningstar Investment Management shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, the information, data, analyses or opinions or their use.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially and/or substantially from any future results expressed or implied.
This commentary is for informational purposes only, is intended to assist investors in making their own investment decisions, and has no regard to the specific investment objectives, financial situation or needs of any specific recipient. Therefore, investments and investment methodologies discussed may not be suitable for all investors: investors must exercise their own independent judgment as to the suitability of such investments strategies in the light of their own investment objectives, experience, taxation status and financial position. The information, data, analyses, and opinions presented herein do not constitute investment advice, are provided solely for informational purposes and therefore are not an offer to buy or sell a security. Please note that references to specific securities or other investment options within this piece should not be considered an offer (as defined by the Securities and Exchange Act) to purchase or sell that specific investment.
Asset allocation and diversification are investment methods used to help manage risk. They do not ensure a profit or protect against a loss. All investments involve risk, including the loss of principal. There can be no assurance that any financial strategy will be successful. Annuity guarantees are subject to the claims paying ability of the issuing insurance company and do not apply to underlying investment options within any annuity.

Read The Transcript