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Have you thought about your money's …


The Challenge

Making the money last longer…

In today’s ultra-low interest rate environment, the main financial challenge facing pension funds, institutional endowments and even individual retirees, is to make a shrinking pile of money last longer. Indeed, safe investment rates are close to zero in real terms, once inflation is accounted for properly. But, on the flip side, taking risks with higher investment allocations to riskier and more volatile assets is… risky. With Black Swans, global disruptions and unexpected volatility lurking behind every economic statistic, one never knows when a portfolio may lose a standard deviation or two.

In the past, in the early years of the fund, you could rely on the so-called long run and the idea that additional savings and contributions would continue the growth of the fund. But, you are now in distribution mode. The net-flow from the fund is negative and money is leaving faster than it is being earned. And, if markets don’t co-operate, you may actually run out of money well before you planned. This is known as the curse of the sequence of returns. So, did you ever ask yourself: What is the longevity of your portfolio? And, more practically, what can you do to extend the longevity of your investment portfolio? We can help.

What We Do

We can add years to life… your portfolio’s life that is.

The first step to making the money last longer, is to measure your portfolio’s current longevity assuming you continue existing spending and withdrawal policies. We can help by creating a tailored diagnostic of your fund’s longevity. We will run the cold, harsh calculus of how long your portfolio is expected to last – measured in years, months and days – if you continue with the status quo. The number itself may be a sobering wake up call. The next step is to do something about it. And, we can help there too. Whether it is reducing spending itself, or changing your payout formula or hedging your downside risk – these can all help extend longevity.

Finally - and most importantly - we help you EXPLAIN it all to the various stakeholders within your organization. Many of today's finance & insurance solutions can appear overly complex and bewildering to non-specialists. Our management has over 25 years of high-level experience presenting complex economic problems in the simplest and clearest of terms. We demystify and illuminate the longevity of wealth.

In sum, we can add years to your life… your portfolio’s life that is.

Related Material

Investment portfolio life extension using put and call options.

A spending formula to preserve the corpus of a large endowment fund for 30 years.

Recent report on longevity of your nest egg under existing tax regulations.

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Who We Are

π Longevity Extension Corporation is a collection of experienced financial professionals, statisticians and researchers led by Moshe A. Milevsky, Ph.D., who is a professor at the Schulich School of Business at York University in Toronto.

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