What to do in a lower-return enviornment?

I have been fascinated or economicly curious about what the world is going to look like in the next 10 to 20 years; or, even 30 to 40 years. One thing that I intuitively believe, returns of the past 100 years are not a good proxy.

I read this Q&A from Chief Executive Officer and Chief Investment Officer of Vanguard, and a couple things stood out for how folks can/should prepare for a lower-return enviornment:

  1. In a lower-return enviornment, costs take a bigger percentage of the returns. Low-cost investments are key.
  2. Increase savings rates by 1 to 2% each year. This will help to account for the lower return enviornment.
  3. The average savings into a 401K with company match is 10%. They are recommending around 12 to 15%.

Read Vanguard’s Addressing Lower Returns here.

What would an actuary do?

As a self-proclaimed economist, I enjoy thinking of things from a systemic perspective, incentive structures and behavioral economics. To that end, I have been reading and learning about the insurance industry.

What type of life insurance do actuaries buy? 

http://alephblog.com/2012/08/14/what-insurance-do-actuaries-buy/

Advice from an Actuary

http://www.mymoneyblog.com/life-insurance-advice-from-actuary.html

A Life Insurance Agents Quest to Shine Light on the Industry

http://www.breadwinnersinsurance.com

What are some good insurance companies?

https://www.goodfinancialcents.com/insurance-quotes/life/companies/ (I still need to vet this, but their recommendation about https://havenlife.com and http://lemonade.com).

Note: this is a living post and will continually be updated