More than 40% of employer matches go to the richest 20% of workers, according to a new report on retirement savings. Marketplace’s Caleigh Wells interviews finance experts, including Prof. Taha Choukhmane, who says white employees tend to benefit most, “whereas those who are single parents of kids, those who are Black or Hispanic, those who have lower-income parents tend to contribute less and make less in these matching contributions.”
TechCrunch reporters Christine Hall, Anita Ramaswamy, Connie Loizos and Mary Ann Azevedo spotlight Sribuu, an AI-powered personal financial advisor in Indonesia, co-founded by Nadia Amalia ’20. The company is aimed at helping “users make better money decisions with our wealth management tools and give personalized saving advice based on their financial habits,” they write.
Writing for The New York Times, Prof. Amy Finkelstein makes the case that cash transfers can do more to help the poor than expanding health insurance. “Cash helps recipients directly, while health insurance would pay mainly for care that many uninsured people were already receiving at low or no cost,” writes Finkelstein.
As part of a SHOOKtalks session, Joseph Coughlin, director of the AgeLab, discusses how the pandemic has altered the way financial advisors work with clients, reports R.J. Shook for Forbes. “The one thing COVID did is it pushed technology into our lives,” says Coughlin. “It is not a novelty. COVID showed us that technology actually adds new value.”
Sloan senior lecturer Robert Pozen and undergraduate Ming Lu contributed this article to Fortune about the dangers of having too much employer stock in your 401(k). “[P]ast performance is not a good predictor of future performance—especially in this era of disruptive innovation,” they explain.
Research co-authored by Prof. Christopher Palmer in Sloan found that loan rates vary substantially, even when two borrowers are relatively similar, due primarily to the variations in the lender’s markup. “You would never get away with this if you were selling milk,” Palmer told Jo Craven McGinty of The Wall Street Journal. “It would be the same price for everyone.”
Richard Eisenberg of Forbes writes about a symposium hosted by the MIT AgeLab, which explored the impact of Alzheimer’s and dementia on financial planning. The symposium “brought together a broad spectrum of experts ranging from Alzheimer’s Association execs to neurology professors to financial advisers to people who have early onset Alzheimer’s or are married to them,” writes Eisenberg.