A new study by the American Institute for Economic Research suggests that people who are “bored” about retirement and want to save more can be a lot smarter about it than those who “just have it” and don’t think about it.
In a new paper, researchers found that the more people are willing to take risks to save, the better off they are, even if the benefits are minimal.
For instance, if a participant’s goal was to buy a house, the risk-taking could result in a $50,000 annual return, the researchers found.
The study, conducted by the University of Illinois, looked at data on more than 100,000 households from the 2010 to 2014 period.
The researchers analyzed how participants were responding to three questions: What is the value of a year’s earnings from savings?
Is it worth the risk of not saving?
The results suggest that the longer people are engaged in saving, the less likely they are to be able to save enough to reach their retirement goals.
The researchers also found that “boring” participants were actually better than “borying” and “just having it” participants.
Participants who were bored about saving were more likely to have a high-risk, high-return portfolio.
And those who were “just bored” were much better at saving.
Participants with a high risk-to-return ratio were about 4 percent more likely than those with a low risk-tolerant ratio to save less than the value.
In other words, “borrowing” from the “borrow” phase of the portfolio actually made people more likely in the long run to have high returns.
The results are based on the data collected over 10 years.
It’s not clear why the “just-borrowing-and-not-saving” group has better returns than the “boring” group, but the study says that the “high-risk” participants are likely to invest in stocks and bonds, while the “low-risk-to and low-return” participants may invest in bonds and stocks.
While there’s a lot of research about the “dumb money” crowd, there’s no research to back up the notion that it’s the “lazy money” who are the dumb ones.
Instead, the study found that people “just” have it, and those who aren’t doing so are actually more risk-averse than those whose goal is to save.
The authors also say that the study doesn’t prove that the low-risk strategy leads to lower returns, but it’s a reminder that investing in low-level risks is the best way to get rich.