When we can’t plan to spend our last penny on our last day on earth

I was delighted to meet Professor Dimson at the Science of Retirement Conference earlier this year as I have had his book ‘The Triumph of the Optimists’ on bookshelf for many years.

Elroy Dimson is Emeritus Professor of Finance at the London Business School. His research focuses on investing for the long term, and he has become well known for their studies of the investment performance since 1900 of financial assets in 23 countries.

Professor Dimson discussed the dilemma for impending and current retirees. Your ideal retirement plan will see you spending your last penny in your last day on this planet. As we don’t know how long we’ll live, we need to plan to leave a bequest.

There may be undesired and unforeseen expenses. Sticking your money in the bank will mean you’ll have lower purchasing

 power when you spend the money than when you saved it. So, you need to find a better return on your money.

Professor Elroy discusses which type of investments you could consider and why. Overall, Professor Dimson believes it’s best to create and stick to a long-term plan.

Professor Dimson chairs the Centre for Endowment Asset Management at Cambridge Judge Business School, and is Emeritus Professor of Finance at London Business School.

His research focuses on investing for the long term, and he and his co-authors have become well known for their studies of the investment performance since 1900 of financial assets in 23 countries and real assets such as wine, stamps, art and other collectibles.

Tune in to hear Professor Dimson on episode 025 of The Retirement Café Podcast.

 

Useful links

Free download of ‘Triumph of the Optimists’ book

About Professor Dimson

Free download of chapter 1 of Financial Market History: Reflections on the Past for Investors Today by David Chambers and  Elroy Dimson.

Free download of Global Investment Returns Yearbook 2019 by Professor Dimson, Paul Marsh, Mike Staunton.

 

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