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…
A May 6, 2013
Headlines about a bond market meltdown are catching fire all over the world. In the UK, The Telegraph recently reported British pensioners could face a 50 percent portfolio decline if there’s a bond market correction. Others, like David Roche president of Independent Strategy, suggested to CNBC that bonds are currently the most dangerous asset class to own. Scott Burns agrees. read more…