Introduction: An Equation Can't Predict Your Future . . .But It Can Help You Plan for It 1 Chapter 1: How Long Will My Number Last? Equation #1: Leonardo Fibonacci (1170?1250) 7 Chapter 2: How Long Will I Spend in Retirement? Equation #2: Benjamin Gompertz (1779?1865) 31 Chapter 3: Is a Pension Annuity Worth It? Equation #3: Edmond Halley (1656?1742) 53 Chapter 4: What Is a Proper Spending Rate? Equation #4: Irving Fisher (1867?1947) 77 Chapter 5: How Much in Risky Stocks versus Safe Cash? Equation #5: Paul Samuelson (1915?2009) 101 Chapter 6: What Is Your Financial Legacy Today? Equation #6: Solomon S. Huebner (1882?1964) 125 Chapter 7: Is My Current Plan Sustainable? Equation #7: Andrei N. Kolmogorov (1903?1987) 151 Conclusion: Controversies, Omissions and Concluding Thoughts 175 Appendix: Crash Course on Natural and Unnatural Logarithms 179 References and Sources 185 Acknowledgments 195 About the Author 197 Short Poem by Maya Milevsky (age 11) 199 Index 201
Moshe A. Milevsky, Ph.D. , is a professor at York University (Toronto). He has graduate degrees in finance and mathematics, and is a fellow of the Fields Institute for Research in Mathematical Sciences, where he is the executive director of the IFID Centre. He has written nine books, published over 60 peer-reviewed research studies and over 200 magazine articles--including a featured story in the Wall Street Journal and a profile in Money Magazine --on the topic of retirement income planning. He has delivered over 1,000 seminars, keynote presentations and training sessions to audiences all over the world. His popular writing earned him two National Magazine Awards (Canada). In 2009 he was given a lifetime achievement award from the U.S.-based Retirement Income Industry Association (RIIA). Moshe grew up in Latin America and the U.S., but currently lives in Toronto with his wife and four daughters.