scholarly journals Aging, Unemployment, and Welfare in a Life-Cycle Model with Costly Labor Market Search

2002 ◽  
Author(s):  
Joydeep Bhattacharya ◽  
Robert R. Reed III
Author(s):  
Surya Kolluri ◽  
Cynthia Hutchins

Using a theoretical life cycle model, this chapter evaluates how much workers benefit from having the option to hire a financial advisor when it is costly for employees to rebalance their own financial portfolios. Results indicate that having access to a financial advisor at the start of one’s career can be quite beneficial. If delegation to an advisor is available only a decade after entering the labor market, the benefit of delegation is cut by half, and it falls further if delegation is available only later in life (at age 60). The chapter also examines whether simpler target date funds (TDF) and fixed weight portfolios benefit consumers, compared to the outcomes with customized financial advice. The authors show that the simpler portfolio products would need to be provided at zero cost, in order to benefit consumers as much as having access to a financial advisor.


2020 ◽  
Author(s):  
Ines Black ◽  
Sharique Hasan ◽  
Rembrand Koning

2020 ◽  
Author(s):  
Oleg Malafeyev ◽  
Irina Zaitseva ◽  
Sergey Sychev ◽  
Gennady Badin ◽  
Ilya Pavlov ◽  
...  

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