In his latest book, 'Finance for Normal People: How Investors and Markets Behave,' Prof. Statman describes the behavioral-wants frontier. He contends that people seek 'utilitarian, expressive and emotional' benefits from what they buy.
The Nobel Prize-winning economist and his colleague propose a new way to turn DC savings into retirement income. It involves 'Standard of Living Indexed, Forward-Starting, Income-Only Securities' (SeLFIES), an unprecedented government bond.
“Survivor funds,” which offer mortality credits but aren’t annuities, could provide investors with enhanced returns, these authors claim. But, for some, loss of principal would be certain. (Painting of New York's Tontine Coffee House by Streeter Blair, 1953)
At the NAPA 401k Summit in Las Vegas this week, nearly 2,000 plan sponsor advisors et al worried about policy threats to their industry. At nearby slots and gaming tables, middle-class Americans fecklessly squandered their nest eggs.
'Given a snail’s pace of removing excessive monetary policy accommodation, it is hard to envision Fed policy threatening the economy any time soon,' a former senior economist at the Fed who blogs at Numbernomics.
As a self-employed person who writes painful quarterly checks to Uncle Sam and pays both ends of his Social Security tax, I made my peace with the infernal revenue service long ago.
The Lifetime Income Solutions II contract offers two income riders, one of which has a 5% simple roll-up. The Pivot contract offers a two-sleeve strategy that calls for periodic transfers from an accumulation account to a deferred income annuity.
Writing in the April issue of the Journal of Financial Planning, the "Nest Egg Gurus" and Morningstar's David Blanchett show that many questions about sustainable withdrawal rates from retirement portfolios are still wide open.