Tag: retirement wealth accumulation
Somebody breezed into my office last week convinced that people are making a serious mistake by investing their money in a house. She pointed to the low long-run return on the Case-Shiller house price index and concluded that everyone would be better off if they invested their money in equities instead. This conclusion seems wrong-headed…
Abstract This paper examines the relation between fluctuations in the aggregate value of equities and the adequacy of households’ saving for retirement. We find that many and perhaps most households appear to be saving adequate amounts for retirement, but almost no link between stock values and the adequacy of retirement saving. Historical variation in equity…