E=MC Hammered! Is Your Retirement Portfolio Ready for a Century of Living?

The 60 40 Portfolio: A Relic of a Bygone Era?

My dear colleagues it seems the classic 60 40 portfolio once a cornerstone of retirement planning is facing an existential crisis. Some are returning to this concept given the recent stock market volatility. Ach! A mistake! As I once said about another crisis 'The definition of insanity is doing the same thing over and over and expecting different results.' And investing is the same way. According to the esteemed Ric Edelman it is not the bonds that are the problem but ourselves! We are simply living too long. It's like relativity – the faster we age the less money we have or something like that.

The Longevity Bomb: Tick Tock Goes the Retirement Clock

The crux of the matter you see is that humans are becoming frightfully good at not dying. Edelman points out that we're living longer than ever. Imagine that! It seems 'imagination is more important than knowledge,' especially when imagining how you'll afford caviar at 100. He implores us to plan as if we'll reach a century. A sobering thought! It's as if the universe is conspiring to make our retirement funds disappear faster than a photon near a black hole. Therefore it's necessary to make sure you have enough investments in the stock market. Edelman recommends 70 to 80 percent. Otherwise you are risking living longer than your savings account. That is the real problem.

Numbers Don't Lie (But They Can Be Misleading)

The statistics are rather alarming. By 2060 a significant chunk of the population will be enjoying their golden years – or perhaps frantically searching for affordable healthcare. Fidelity Investments suggests a hefty sum is needed just for medical expenses and Federal Reserve data paints a bleak picture of inadequate retirement savings. It's a cosmic joke really. We conquer disease only to be defeated by… inflation! But if you die at 80 it's no problem. However if you live to 90 100 or even 110 then it is a problem.

Alzheimer's and the High Cost of Hanging Around

And then there's the specter of Alzheimer's. Edelman with his philanthropic endeavors highlights the devastating impact of this disease. The cost of care is astronomical potentially bankrupting families. But there is hope! Early detection through blood tests coupled with lifestyle changes might offer a fighting chance. As I always say 'Strive not to be a success but rather to be of value' – especially when it comes to delaying neurological decline.

Bond Ladders: Stairway to (Financial) Heaven?

Fear not for there's a potential solution in the bond market: the bond ladder! Edelman champions this strategy particularly in ETF form as a means of securing lifetime income. It's about as exciting as watching paint dry he admits but it's a stable tax efficient way to generate income. The LifeX2035 Term Income ETF is an innovator that brings this concept to the ETF world. The ETF invests in U.S. treasuries that generate income and return capital to investors from the maturing bonds. Imagine trying to replicate this on your own with 120 treasury bonds! What a nuisance Edelman says!

A Brighter Future (Perhaps)

So my friends let us embrace the future with a mix of optimism and pragmatism. Living longer is a blessing but it demands a reevaluation of our financial strategies. Embrace innovation diversify your investments and maybe just maybe you'll outlive your portfolio in style. As Edelman boldly predicts you might even be healthier at 95 than you are today! Now if only I could apply that principle to my hair...