Wharton Pension Research Council Working Papers
 

Title

An Analysis of Investment Advice to Retirement Plan Participants

Document Type

Working Paper

Date of this Version

1-1-2002

Abstract

This chapter examines the investment advice currently provided to participants in self-directed retirement plans (401k, 403b, etc.) by financial service firms and investment advisory services. It finds much of the advice to be logically flawed and dangerously misleading. There exists a strong bias in favor of investing retirement savings in the stock market without insurance against a market decline. The paper concludes that in view of the limited ability of the general public to handle the complex task of investing for retirement, financial firms will have to design safer products with a small number of choices that are easily understood.

Comments

The published version of this Working Paper may be found in the 2003 publication: The Pension Challenge: Risk Transfers and Retirement Income Security.

Working Paper Number

WP2002-15

Copyright/Permission Statement

©2002 Pension Research Council of the Wharton School of the University of Pennsylvania. All Rights Reserved.

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Date Posted: 06 September 2019