Prologue
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ou’re about to read a book written by an actuary. Wait, don’t close the cover. I know the old stereotypes. What’s an actuary? A Certi- fied Public Accountant without the personality. What’s a com- puter? An actuary with a heart. But the truth is, an actuary is someone who uses math and sta- tistics to assess and minimize risk. And, whether or not you know it, risk is all around you as you save for the future. So what’s an actuary doing writing a book on saving? In 1998, I was talking to one of my oldest friends as he began getting his assets in order for retirement. At the time, I was chief executive officer of an annuity company, but on the side I was al- ways giving advice to friends and family who needed help figuring out complex financial decisions. As an actuary, I knew how to get deep into financial products and figure out their benefits, so giving my friends some informal advice became a hobby. On that afternoon in 1998, over a cup of coffee at my office, my friend asked me a question that would change my life: “Do people like you ever help people like me plan for retirement? I want an actuary to be my advisor.” It was an intriguing question. But I had to answer: “No.” It’s a funny thing. Actuaries are uniquely positioned to help you think about saving. Our specialty is discovering risks and figuring out how to eliminate (or at least minimize) them. But the vast ma- jority of actuaries work for large financial or insurance companies in steel and glass towers, where they seldom come into contact with the public. Actuaries spend their time helping institutions, not individuals.
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