Tag: 401(k) plans
My colleagues and I are beginning to think seriously about embedding annuities in 401(k) plans. 401(k) plans generally offer lump sums, which means that retirees have to decide how much to withdraw each year. They face the risk of either spending too quickly and outliving their resources or spending too conservatively and consuming too little.&nbs…
I keep worrying that people approaching retirement with 401(k)/IRA balances don’t realize that they owe taxes on their accumulations. I’m sympathetic. It’s hard to accept that the pile that we’ve contributed to and nursed over our working life is not all ours. Of course, we have all benefited throughout the years by not having to…
