On the surface, many financial decisions may appear as simple math problems, but the numbers alone don’t always provide the “right” answer for everyone. One domain this applies is an investor’s decumulation phase—the period where our focus is no longer on accumulating savings for the future and becomes about how to draw on the nest egg we’ve built and fund our income in retirement.
Social security claiming decisions are a prime example. How much you ultimately receive from social security is not only affected by when you claim but also how long you live. This leads to decisions that can be fraught with psychological factors.
On this episode of The Behavioral Divide, presented by Avantis Investors®, Professor Hal Hershfield discusses these psychological considerations that arise with decumulation and social security claiming decisions. To uncover the latest from the academic research and real-world advice, he speaks with an expert in decumulation decisions, Professor Suzanne Shu of Cornell University, and the CEO of financial advisory firm Define Financial, Taylor Schulte, CFP®.
If you enjoy the show, please subscribe or let us know by giving our series a five-star rating. We’d also love to hear from you. To join in on the discussion, send us a note at BehavioralDivide@AvantisInvestors.com.
Important Disclosures
The views expressed in this presentation are the speaker’s own and not necessarily those of American Century Investments. This presentation is for general information only and is not intended to provide investment, tax or legal advice or recommendations for any particular situation or type of retirement plan. Please consult with a financial, tax or legal advisor on your own particular circumstances.
Hal Hershfield is not affiliated with American Century Investments.
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