Go Ahead, Buy the Harley

New research in the Journal of Personal Finance shows why retirees can spend 20% more in early retirement than the 4% rule allows. In our latest research roundup, we also highlight research on aging, the demographic aspects of investment mistakes and Social Security claiming.

Research Roundup

We summarize four recent papers: 'Portfolios for Long-Term Investors,' 'What is the Value of Annuities?,' 'Public Economics and Inequality: Uncovering Our Social Nature,' and 'Financial and Total Wealth Inequality with Low Interest Rates.'

An Annuity’s ‘Moneyness’? There’s an App for That

How will variable annuity contract owners use their income benefits? That question is vital to annuity issuers and to fiduciary advisers with clients who own VAs. This Texas Dep't of Insurance actuary knows a product that can help them find out.

A Chip Off the Old Rock?

Bloomberg reported this week that Prudential is considering selling its retirement plan recordkeeping business. Prudential didn't confirm the report, but several industry insiders did. Low interest rates, high costs of IT makeovers, and sticky stable value fund guarantees are driving the move, RIJ was told.
Featured

The Bezzle Years

John Kay, a visiting professor of economics at the London School of Economics, describes the happy feeling that precedes our realization that we've bought a pig in a poke.
News

Industry-sponsored legal study attacks ‘robo-advisors’

A recent paper by D.C. attorney Melanie Fein argues that “Robo-advisors do not provide personal investment advice, do not meet a high standard of care for fiduciary investing, and do not act in the client’s best interest."