In the News

Title

An Unattractive Proposition

Document Type

Article

Publication Date

3-6-2012

Abstract

In my column last month, "Economists Love 'Em, Clients Hate 'Em," I outlined some of the reasons economists are largely fans of immediate annuities; people are living longer, most people have little or no expertise in managing a portfolio, there is a benefit to society when a steady income is available, and as behavioral finance clearly demonstrates, people are typically bad at making financial decisions. Just last month, the Treasury and the Department of Labor proposed rules encouraging employers to include annuity options in 401(k)s and other retirement plans.