PSYC 5571 Lecture Notes - Lecture 23: Redistribution Of Income And Wealth, Defined Contribution Plan
Document Summary
**paper first draft needs to be submitted on canvas on thursday (any time) More radical proposals for new social security system. It"s your money, maybe you should be allowed to do what you want with it. Maybe people don"t know how to invest and they can just choose between a couple options. An annuity is when you pay a bank a certain amount (like k) & then the bank pays you a monthly amount every month until you die. An annuity prevents you from spending all your money at once. An annuity is also a great deal for people who live a long time. Risk averse people would be more likely to take this deal. Some features of private accounts: you own & control your own assets, unlike ss. This could allow poor people to benefit from the stock market & learn about the stock market, could increase the amount of financially literate people.
