Research Articles

Illustrating the Value of Retirement Accounts

The following is an abstract. Here is a link to the full article: Illustrating the Value of Retirement Accounts.

I received interesting feedback based on varying interpretations of a recent article I wrote (’Quantifying the Value of Retirement Accounts’). Unfortunately, much of this feedback provided further evidence of the flawed logic and assumptions many (even professionals) use in the context of financial planning with retirement accounts (e.g., IRAs).

This article attempts to clear up some of the confusion around the assumptions, logic, and results discussed in my previous article. I first provide a generalized framework in order to identify the primary variables that are relevant when making decisions around retirement accounts. I then provide hypothetical examples to illustrate how one might sensibly leverage this framework and the results from my previous article.