It’s common for retirees — even well informed retirees — to make financial decisions that, from a purely economic perspective, don’t make sense. People like to hold much more cash than they actually need. People with no bequest motive and long life expectancies still tend to claim Social Security early and avoid annuitizing their portfolios. People prefer variable annuities to basic immediate lifetime annuities, even though they’re usually an inferior tool for satisfying an income need. The list goes on and on.
This week, Michael Kitces provides an interesting discussion of a psychological “hierarchy of retirement needs” that seems to be informing these decisions.
- Behavioral Biases And The Hierarchy Of Retirement Needs from Michael Kitces
- My Investment Portfolio: 2017 from Darrow Kirkpatrick
- How To Make Sense Of Bond Pricing from Wade Pfau
- Cognitive Aging and the Capacity to Manage Money from Anek Belbase and Geoffrey Sanzenbacher
Other Money-Related Articles
- Stop Wasting Money on Doing Your Taxes (a different take on my topic from Monday) from Harry Sit
- What is a Reverse Mortgage? from Bob French
Thanks for reading!