It’s simple, says the Nobel Prize winner: To get greater returns for retirement, be mindful of investment costs – and don’t look to the market for sympathy
“Ten thousand baby boomers are retiring every day, and every part of the financial industry is lusting after their money – offering products and services of all kinds,” says William Sharpe, who won the Nobel Memorial Prize for economics in 1990, and is now a professor emeritus of finance at Stanford Graduate School of Business. “In the old days,” he says, “you got a pension, a Social Security check, or both and had no investment decisions to make. Your choices were pretty clear-cut. Now they’re not, and people saving and investing for retirement are begging for answers.”
You’re not saying you should always stick to investing in a market-matching portfolio of global bonds and stocks, are you?
This piece originally appeared in Stanford Business Insights from Stanford Graduate School of Business. To receive business ideas and insights from Stanford GSB click here: (To sign up: https://www.gsb.stanford.edu/insights/about/emails)