Meir Statman Interview: Mandatory Saving at work?

Meir Statman is the Glenn Klimek Professor of Finance at Santa Clara University. His research focuses on behavioral finance. He attempts to understand how investors and managers make financial decisions and how these decisions are reflected in financial markets.

photo.jpgIn this interview with Institutional Investor Journals, he discusses the recent news of a retirement crisis in the United States.  He discusses that his research shows that it is really a crisis for the poor segment of the U.S. society and those at the lower end of the middle class that spend too much.

His research shows that the wealthest part of society only takes the miniuim required withdrawals (known as RMD’s) from their IRA and 401k accounts which means that they have enough money to spend without taking more from these retirement accounts.

So how can we have the segment that fits the high spenders and less savers to save more?  He suggests that a idea would for employers to require mandatory savings instead of just encouraging employees to save for retirement.  This would be similiar to the time when companys handled the manadatory savings for workers by creating pensions for their employees.

An interesting idea, but the savings plans offered through 401 (k) plans would have to continue on the current trend to provide better options for workers.

Click below to see the 9 minute video:

Meir Statman interview

If you enjoyed this article,  CLICK HERE to subscribe to free updates from “Roots of Wealth”.

 

The foregoing content reflects the opinions of Crimmins Wealth Management and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful.

About Dan Crimmins

Dan Crimmins, co-founder of Crimmins Wealth Management, is a financial coach and fee only financial planner. Have a financial question? ASK DAN

Subscribe

Enter your email address to sign up for free updates from Roots of Wealth and build a strong financial foundation! (we respect your privacy)

, ,

No comments yet.

Leave a Reply