09 May 2014

Bill Sharpe on Retirement Planning: “I Would Prefer to Default People into an Annuity”

On the margins of the 67th CFA Institute Annual Conference in Seattle this week, Stanford University business school professor emeritus William F. Sharpe sat down with the Financial Times for a video interview that amplified several key themes that the Nobel Laureate discussed in his remarks to delegates. Among them are the challenge of generating income in retirement, the active versus passive debate in investment management, and why financial models often fall short.

“Many people who are lower- and middle-income really are taking a big risk if they do not annuitize to some extent — a risk of basically running out of money,” he tells the FT‘s John Authers. You can watch the full interview below.

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

Tags: financial models, portfolio management, Retirement, video

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About the Author(s)

Len Costa

Len Costa was head of communications and content strategy at CFA Institute, where he oversaw global social media, mobile products, and digital content strategy. He previously served as director of interactive media at the Institute for Private Investors (IPI), a peer networking organization for ultra-high-net-worth families and their advisers. Costa also wrote a private wealth column for the Financial Times and, prior to joining IPI, he held senior editorial positions at Institutional Investor and Worth magazines. His writing has also appeared in Forbes, Fortune, Slate, and The New York Times. Costa holds a BA from the University of Virginia, a diploma in French language from the Université de Paris, and a master’s degree in international affairs from Columbia University.