A forthcoming paper gives some hints on how to make annuities more appealing.
Tag "Equity Premium Puzzle"
The two conducted simulations and discovered they can fully explain the Equity Premium Puzzle if investors look at their portfolios on an annual basis. Here’s how it works.
Again, it comes down to a question of needs, costs and personal preferences. What’s more important: Avoiding bankruptcy and sharing control or increasing long-term profits and retaining control?
