Felix Salmon

Don’t buy index annuities

Lisa Gibbs has a great article on index annuities in Money magazine (HT: TFF). The short version: don’t buy them, and don’t let your parents buy them.

A retirement-fund paradox

David Merkel is insightful when it comes to a huge status-quo bias in retirement funds. If we have a lump sum, we’re loathe to convert it to a guaranteed income, even when we value the guaranteed income that we do have extremely highly: