I am behind any idea that puts savings on autopilot and takes a lot of thought out of it. Take for example every time we get a raise in our salary. We should automatically have our savings contributions adjust accordingly when that happens.
Posts From Christopher Carosa, CTFA
Changes, SEC as cavalry, and the revenge of the Alts.
With the introduction of the concept of anchoring, Tversky and Kahneman opened the door to a new way of thinking about and addressing the financial decision-making process. For more than four decades, subsequent research has expanded upon their idea. Yet, plan sponsors and participants continue to remain uninformed of the dangers of anchoring.
With a GOT-based strategy, expectations are predicated on needs, not the happenstance of the market. GOT-based portfolios may not have the record-breaking excitement of market indices, but itâs slow-and-steady-wins-the-race philosophy may lead to a more comfortable retirement.
All the preceding reasons logically lead to this one undeniable truth: You either meet your goal or you donât. All other methods of measurement, all other forms of calculations, all other arbitrary comparisons fail to stand up to this simple, common-sense, metric.
In retirement planning, there can never be any guarantees. Thatâs why itâs critical that these tools are used continually and consistently. A magician never gives the audienceâs eyes a chance to wander.
Never belittle the question or the person asking the question. These are sincere queries that represent commonly held beliefs. These beliefs live a Schrodinger Cat-like existence, being generally not quite true and not quite false. Itâs critical, for the benefit of all retirement savers, that these questions be asked and that fiduciaries encourage their asking. This is the only way that allows the fiduciary to respond in the second noteworthy way: By using these questions to refute misconceptions and promote good retirement saving decision-making.
FiduciaryNews.com Trending Topics for ERISA Plan Sponsors: Week Ending 12/22/17
Tis the season and there’s a carol for everything.