Here We Go Again: Merton Share and Why I Don’t Use Retirement Calculators While Merton is one of the most brilliant financial economists who ever lived, high-level quantitative chops do not guarantee financial success.

So…let’s go, eh? 💰🏃🏽‍♂️🏃🏽‍♀️

Not so fast! A critique 🧐:

“Here We Go Again: Merton Share And Why I Don’t Use Retirement Calculators”, William Bernstein, Advisor Perspectives (www.advisorperspectives.com/articles/202...).

#MertonShare #Retirement #Finance #Investing #Economics #Math #Hype

The original papers by Robert C. Merton:

“Lifetime Portfolio Selection Under Uncertainty: The Continuous-Time Case” [1969, PDF] (www.sfu.ca/~kkasa/Merto...).

“Optimum Consumption And Portfolio Rules In A Continuous-Time Model” [1971, PDF] (www.sfu.ca/~kkasa/Merto...).

#MertonShare

The Missing Billionaires - Wikipedia

The #book:

“The Missing Billionaires” [2023], by James White & Victor Haghani (en.wikipedia.org/wiki/The_Mis...)

seeks to popularize the #MertonShare.

A #review in The Economist:

“How To Avoid A Common Investment Mistake” [2023] (www.economist.com/finance-and-... or archive.is/W1IlG).

How to invest your enormous inheritance Do not make the mistakes of the first Gilded Age

#MertonShare also advises on how to spend from your (retirement | endowment | inheritance) kitty — it’s not what you’d expect 🤨:

“How To Invest Your Enormous Inheritance”, The Economist (www.economist.com/finance-and-... or archive.is/fPfoW).

#Wealth #Finance #Retirement

How much happiness does money buy? Your answer determines not just how you should live, but how you should invest

I was today years old when I learned of the “Merton Share” framework for investment & spending 💰🧐:

“How Much Happiness Does Money Buy?” [2024], The Economist (www.economist.com/christmas-sp... or archive.is/P5Cu7).

#MertonShare #PortfolioAllocation #Investing #Finance