scholarly journals Less is not more: 401(k) plan information and retirement planning choices

Author(s):  
Eric Cardella ◽  
Charlene M. Kalenkoski ◽  
Michael Parent

Abstract This paper presents the results of a choice experiment that is designed to examine whether changing how plan information is presented affects planned retirement-savings behavior. The main hypothesis is that providing plan information in a more concise format with helpful recommendations, rather than providing lengthy and detailed information, will alter retirement-planning choices. The specific choices examined include: whether to enroll, how much to contribute, and how to structure (broadly) the asset allocation. The choice experiment is conducted on three different samples: (i) a Qualtrics panel of new employees, (ii) a Qualtrics panel of job seekers, and (iii) a sample of business-school students. Our results suggest that, controlling for demographic and other factors, our main hypothesis was not supported by the data in any of the samples. Thus, the data cast some doubt on the notion that simplifying and condensing the retirement-plan information presented to employees will result in vastly different retirement-planning choices.

The retirement goals of many Americans are underfunded. The problem is compounded by the complexity of self-managing distribution portfolios, particularly as DC plans replace DB plans. We believe most retirement glide paths are satisfactory but suboptimal solutions. We introduce a glide path of financial assets over the life cycle based on a retirement goal and depleting human capital. The method is anchored to the foundational principles of intertemporal portfolio theory while borrowing heavily from goals-based asset allocation. The result is a dynamic asset allocation over the life cycle that is a function of critical input variables relevant to retirement planning such as retirement savings, retirement consumption and risk aversion. The glide path can be customized to individuals, or semi-customized to discrete subpopulations of DC plan participants.


2017 ◽  
Vol 2 (4) ◽  
pp. 325-332
Author(s):  
Kevin S. Thompson ◽  
David Noble

The interest in aligning college graduates’ skills, competencies, and experiences with what employers desire continues across academia. Employers seek higher levels of resilience than they see in most new employees. This article provides a review of the employee resilience literature and describes a team member change scenario focused on enhancing student resilience for use by faculty in course design. Business school students participating in a 10-week, team-based business simulation experience a team member change midway through the simulation. Student response and descriptions of learning outcomes from the member change experience are discussed.


2021 ◽  
pp. 1-34
Author(s):  
Peter A. Forsyth ◽  
Kenneth R. Vetzal ◽  
Graham Westmacott

Abstract We extend the Annually Recalculated Virtual Annuity (ARVA) spending rule for retirement savings decumulation (Waring and Siegel (2015) Financial Analysts Journal, 71(1), 91–107) to include a cap and a floor on withdrawals. With a minimum withdrawal constraint, the ARVA strategy runs the risk of depleting the investment portfolio. We determine the dynamic asset allocation strategy which maximizes a weighted combination of expected total withdrawals (EW) and expected shortfall (ES), defined as the average of the worst 5% of the outcomes of real terminal wealth. We compare the performance of our dynamic strategy to simpler alternatives which maintain constant asset allocation weights over time accompanied by either our same modified ARVA spending rule or withdrawals that are constant over time in real terms. Tests are carried out using both a parametric model of historical asset returns as well as bootstrap resampling of historical data. Consistent with previous literature that has used different measures of reward and risk than EW and ES, we find that allowing some variability in withdrawals leads to large improvements in efficiency. However, unlike the prior literature, we also demonstrate that further significant enhancements are possible through incorporating a dynamic asset allocation strategy rather than simply keeping asset allocation weights constant throughout retirement.


2011 ◽  
Vol 48 (SPL) ◽  
pp. S1-S13 ◽  
Author(s):  
Craig R.M. Mckenzie ◽  
Michael J. Liersch

1988 ◽  
Vol 41 (4) ◽  
pp. 561-572
Author(s):  
JULIE H. COLLINS ◽  
JAMES H. WYCKOFF

2017 ◽  
Vol 27 (1) ◽  
pp. 56-71 ◽  
Author(s):  
Ashish Pandey ◽  
Rajesh Chandwani ◽  
Ajinkya Navare

1995 ◽  
Vol 76 (2) ◽  
pp. 375-378 ◽  
Author(s):  
Janet S. Greenlee ◽  
Charles P. Cullinan ◽  
David A. Morand

Christie and Geis' Mach IV test was given to 231 senior accounting and management majors at two different universities to assess whether institution attended and specific business major may be associated with Machiavellianism. Scores on Machiavellianism did not vary between accounting and management majors but may be sensitive to the institution which the students choose to attend.


2021 ◽  
Vol 11 (4) ◽  
pp. 1-21
Author(s):  
Louise Whittaker ◽  
Hayley Pearson

Case overview The Gordon Institute of Business Science (GIBS), a South African based business school and one of the top ranked business schools in Africa, was yet again facing a crisis during the COVID-19 pandemic. Having emerged out of an extraordinary year of strict lockdown regulations and having managed a rapid shift to emergency remote teaching. GIBS had managed to maintain its academic programmes, ensuring the completion of the curriculum within the academic year whilst maintaining the exceptionally high standards and quality learning experience it was known for. As 2020 drew to a close, the academic programmes team and the students looked forward to starting the new year in a more “normal” mode of operation. GIBS closed for Christmas holiday with the intent on returning, in early 2021, in some form of face-to-face teaching. However, on the 27th of December 2020, the President of South Africa announced a return to level-3 lockdown as the second wave of infections swept through the country. Strict measures were once again enforced, significantly impacting GIBS’ possible return to campus in January 2021. Reflecting on the lessons learnt over the past year, the Executive Director: Academic Programmes, Professor Louise Whittaker, yet again faced the challenge of deciding how best to proceed given the circumstances. The case illustrates the need for effective change management through the application of Kotter’s 8 steps to transformation, whilst demonstrating the complexity of change management during a crisis. A particular focus on the importance of communication during a change management process in a crisis is illustrated through this case. Expected learning outcomes The learning outcomes are as follows: students need to understand that in a crisis, change management will be emergent and requires flexibility and adaptability; students will determine what concrete actions may be required during a change management process in a crisis; students will need to discern that theoretical models do not necessarily fit real world contexts, particularly in a crisis situation; and students will identify aspects that might be missing or inadequately formulated in standard models of change management. Complexity academic level The case is positioned at a post-graduate level and would be ideal as a teaching case for business school students on a Master of Business Administration programme, a specialised business masters programme or selected executive education programmes for general managers or senior executives. The case can be taught in a course in the following fields, namely, change management, leadership or strategy. Supplementary materials Teaching notes are available for educators only. Subject code CSS 11: Strategy.


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