Should You Convert a Traditional IRA Into a Roth IRA?
The brief finds that converting a traditional IRA to a Roth IRA may appeal to people who: expect their tax rates to rise in retirement; prefer more flexible withdrawal options; and/or wish to increase...
View ArticleValuing Liabilities in State and Local Plans
The brief’s key findings are: What rate to use to discount public pension liabilities is a hot topic. The Government Accounting Standards Board recommends the estimated return on pension assets – about...
View ArticleReducing Costs of 401(k) Plans with ETFs and Commingled Trusts
The brief’s key findings are: 401(k) plan expenses include both explicit fees and trading costs. Trading costs are a major expense for actively-managed funds. While such funds do not necessarily...
View ArticleEquity Returns in the Coming Decade
The brief’s key findings are: Many forecasters contend that the sluggish economic recovery will limit stock returns over the coming decade. Despite the sluggish recovery, corporate earnings have...
View ArticleIs Today’s Price-Earnings Ratio Too High?
The brief’s key findings are: To assess whether stocks are overvalued, analysts often compare stock prices to companies’ cyclically-adjusted (10-year average) earnings. Today’s ratio of stock prices to...
View ArticleHow Does the Personal Income Tax Affect the Progressivity of OASI Benefits?
Abstract This study calculates the impact of federal income taxes on the progressivity of the Old Age and Survivors Insurance (OASI) program. It uses the Health and Retirement Study (HRS) data linked...
View ArticleDo Income Taxes Affect the Progressivity of Social Security?
The brief’s key findings are: Low earners receive much more in Social Security benefits than they pay in Social Security taxes, reflecting the program’s progressive design. The interaction between...
View ArticleRethinking Optimal Wealth Accumulation and Decumulation Strategies in the...
Abstract A substantial literature has developed models of optimal consumption and asset allocation based on the assumption that stocks and bonds have fixed returns, with normal independent, identically...
View ArticleHow Has the Financial Crisis Affected the Consumption of Retirees?
The brief’s key findings are: The impact of the financial crisis on the consumption of retirees depends on how much they have in financial assets, how they invest, and their reliance on assets for...
View ArticleThe Effect of Increasing Earnings Dispersion on Social Security Payroll Tax...
Abstract This paper decomposes trends in the distribution of earnings over the period 1982-2009 and calculates the effect of increases in dispersion in wage and salary earnings on revenues from the...
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