We all make mistakes in life. I can think of a few (hundred) I’ve made over the years.
Posts tagged ‘retirement’
The thought of leaving a legacy that can smooth the way for others, such as your children, is a great feeling. Sometimes, though, good intentions aren’t always enough. Without careful planning, a significant portion of your estate can be eaten up by taxes, tied up in probate court, or distributed to people other than your intended recipients.
The Health-Wealth Connection – Understanding the power of a physically and fiscally fit workforce
I was at an industry meeting recently speaking to a group of employers, retirement plan record keepers, and financial advisors about the state of retirement readiness in America as we move from old America (working for one employer and defined benefit pension plans) to the new America (multiple jobs and defined contribution plans).
The central theme of the talk was that while Americans are not saving enough, viable solutions to get more Americans on track are becoming increasingly clear. We just need to move faster. Read more
Since this is my final blog in my “So You’ve Frozen Your DB plan – Now what?” series, I’m wondering if you are humming any songs in your head yet? Any guesses on what song I’m connecting these blogs to? I’ll give you two hints. Hint #1 – Sir Paul wrote it.
As I’ve been discussing, there are generally three steps a plan sponsor can consider when winding down their frozen defined benefit (DB) plan (that’s your #2 hint!). Today, I’d like to discuss the third step – develop an asset allocation strategy.
A new cottage industry has emerged in the financial world called “behavioral finance theory” (BFT). The foundation of BFT is that people often make decisions that rational economic theory fails to predict. In other words, there is something about human nature that drives us to make different choices around money and finances that a formula or financial plan might otherwise suggest we do.
Laurie Santos*, Director of Yale University’s Comparative Cognition Laboratory and Associate Professor at Yale University, and her colleagues conducted very interesting research regarding this subject. It involved a series of experiments involving capuchin monkeys (a good proxy for human behavior) that explored a handful of key behaviors as they related to behavioral finance theory. Read more