Alex Murguia and Wade Pfau - The Four Retirement Income Styles
This week on Standard Deviations with Dr. Daniel Crosby, Dr. Crosby is joined by Drs. Alex Murguia and Wade Pfau of RISA. Alex graduated from George Washington University with a doctorate in Clinical Psychology. During this time, he focused his research efforts on psychometrics and was a research fellow for the National Institutes of Health. He created a questionnaire to assess how your health beliefs affect how you utilize medical services. It was well-received and set him up for an academic career. Upon graduating, his research interests evolved to investments, and he sought a formal career in the financial industry. He joined McLean Asset Management and was able to publish a number of articles. He also founded a financial planning software company to better serve the industry and our underlying clients. He quickly became disillusioned by the lack of assessment tools used in our profession that can help individuals determine their best path for retirement success. He took Wade’s framework for Retirement Income Planning and sought to quantify these concepts into a workable retirement income model. Wade is a one-man think tank. Wade’s retirement income framework was the base that helped Alex build out the RISA®. He is the Professor of Retirement Income at The American College of Financial Services, a higher education institution for financial planners. He leads the curriculum for their Retirement Income Certified Professional designation (RICP®). He is also a partner with Alex at McLean Asset Management and Retirement Researcher. Wade earned a Ph.D. in economics from Princeton University in 2003 and became a CFA charter holder in 2011. Wade regularly publishes his research on retirement income topics in leading peer-reviewed practitioner-based financial planning research journals.
Tune in to hear:
- What are some of the accomplishments of financial psychology thus far and where should we be headed next?
- Why does Wade diverge from a lot of the popular thinking around insurance products and what does the industry get wrong when it comes to these products and retirement income?
- Is it safe to say that a lot of the benefit of these “unpopular tools” is behavioral in nature?
- What question was Wade hoping to answer when he dove into RISA (Retirement Income Style Awareness) research at a high level?
- In their research did Wade and Alex find any sort of overlap with factors like risk composure or are the retirement styles a separate beast?
- Learn more about the psychology of decumulation and how an awareness of someone’s retirement income style preferences could help you solve for the particular complications of distribution
- Are the four retirement income styles distributed pretty evenly amongst the population or are some particularly popular or unpopular? How greatly would their advice shift from one style to another?
- Did Alex and Wade note any gender differences across proclivities towards the different retirement income styles?
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