Where pensioners should invest and what they are afraid of

G

GSheehy

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Hi Gerard,

How much of that 8 out of 10 cats prefer kitekat bit is a function of (a) lack of relevant knowledge (b) the framing of the question (c) misunderstanding of the risks (d) disproportionate loss aversion, etc., etc.?

Basically, in public policy the uniformed masses should not lead the expert public body........the public body should be expert and lead the masses!
 
@jasdpace@gmail

It's like all surveys, rubbish in - rubbish out.

The public body's still have to sell it to the masses. I just don't see the political will here at the moment, on financial education, to take the leap and bring the masses with them. The providers aren't going to drive it.

I don't know who's buying (or advising) on these at the moment but they seem to be very popular with pension savers "Due to exceptionally high demand, we are closing the 3-Year Fixed Deposit Fund and the 5-Year Fixed Deposit Fund Series 2 with immediate effect.".

Not a lot of execution only clients of mine choose 100% equity strategies for savings or pensions.
 
Investing 130% in stocks will obviously return more than investing 100% in stocks....(ie leaving money in a high risk high return) I'm not sure that point is a revelation?

Modelling will be heavily biased by the past 100 years performance of US stocks - which have been extremely good. The "financial ruin" rate will be heavily influenced by the first 10 - 15 years portfolio performance and the last decade will it not? Ride an up wave, which we have had many, and you won't go bust. What's the financial ruin data for those who would have had huge chunks wiped out if planning to retire in 2010 - a decade of a full pot compounding wiped out just before retirement?

Behavioural finance means many people can not stomach the stock swings.

youtu.be

Professor Scott Cederburg: Challenging the Status Quo on Lifecycle Asset Allocation | RR 284

Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3pIn this episode, we welcome back the esteemed Professor Scott Cederburg, Associate Professor of Fina...
youtu.be youtu.be

Interview with one of the authors.
 
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@GSheehy

All fair comments. I appreciate that it's tricky.

[At an individual level, the right strategy for one person may not be the right strategy for another for multiple reasons. At a general level, even if the strategy is sound, it could give the wrong result for well over a decade which, politically, is an eternity.]
 
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