Retirement

The Center for Retirement Research at Boston College has just released a research brief that addresses whether it makes sense for retirees to carry a mortgage into their retirement years. Many retirees (20%) have a mortgage and also have adequate resources to pay-off that mortgage. The question is whether it makes financial sense to do so. The research brief concludes that it makes sense to pay-off the mortgage unless : the household can earn a risk-free return that exceeds the mortgage...

Brett Arends writes a personal finance column for the Wall Street Journal. He is one of the more interesting and popular personal finance writers in the industry. Although a subscription is required to read the Wall Street Journal, Arends' column (among other Journal features) is highly recommended. For the past two weeks, Arends has written columns that focus on annuities. The columns can be accessed by clicking here and here . Both articles are highly recommended. Topics addressed include:...

Writing in the Huffington Post, CBS MoneyWatch Editor in Chief Eric Schurenberg says he thinks it is time to consider major changes for 401k plans. His criticisms include: 401k plans randomly create winners and losers. 401k plans leave people poor. 401k plans expose people to longevity risk . Comments on longevity risk include: The shame of this is, longevity risk can be insured away by averaging out the risk over an entire population. Every annuity does this. Why not the national retirement...