A May 20, 2013
A friend of mine lived in Tokyo for many years. He demonstrated Japanese culture for his many visitors by dropping his wallet on a pedestrian clogged street. Then he walked briskly away from it, much to the amazement of his visiting friends. In each case (and yes, I do think he was lucky) a breathless man or woman caught up to him, wallet in hand.
Japan has one of the world’s lowest crime rates. So while many Americans brave Mexican and Ecuadorean retiree destinations, it’s worth considering where the Japanese flee for a setting sunset of their own. One such place is Malaysia. read more…
S May 17, 2013
“We must all hang together, or assuredly we shall all hang separately.”
That famous Benjamin Franklin quote came to mind as I read a paper by three researchers who’ve made important contributions to the study of retirement finance — James M. Poterba at M.I.T., Steven F. Venti at Dartmouth, and David A. Wise at Harvard. read more…
S May 15, 2013
Q. I am facing a difficult retirement funding decision. I am a 52-year-old municipal employee. I’m vested in a defined-benefit plan. It will provide me a lifetime annuity beginning at age 62. I have the option of purchasing an additional five years of service for about $75,000. This will bump my monthly annuity at 62 up by $1,200 a month, which seems like a really good deal. What bothers me is that I have to rob my 401(k) for the $75,000. That means I have to give up its potential market growth for 10 years. How would you suggest doing a comparison of these options? —J.A., Austin, TX read more…