045: Roger Ibbotson on Why Financial Advisors Should Consider Fixed Indexed Annuities As Bond Alternative

In today’s conversation, I sit down with a legend in the world of finance, Mr. Roger Ibbotson himself. In 1977, Roger published the first edition of Stocks, Bonds, Bills, and Inflation, a collection of historical returns dating as far back as 1926 - in a sense, he was ahead of his time as no one had compiled this historical market data all in one place before, in a way that was easy to understand. Based on the positive response from this landmark study, he founded Ibbotson Associates in the same year which he later sold to Morningstar in 2006 for $83M. Roger is currently Chairman and CIO at Zebra Capital Management and he has also served as a Finance Professor at the Yale School of Management for 30 years. Today we dive into his most recent work, a whitepaper titled “Fixed Indexed Annuities: Consider the Alternative.” In it, Roger examines how today's historically low interest rates and bond returns are putting many retirees in danger of not producing enough income from the fixed portions of their portfolios through retirement. He gets into the biases both consumers and financial advisors often have when they hear the word “annuity” and why his math shows that fixed indexed annuities may prove a viable alternative in many retirement portfolios. Get Roger's Whitepaper "Fixed Index Annuities: Consider the Alternative" at BradleyJohnson.com/45