Meir Statman : How to make the most out of your retirement fund : Kiplinger
Meir Statman, Glenn Klimek Professor of Finance, was featured in a Kiplinger article discussing how retirees spend their assets. He argues how retirees can splurge but still be smart about spending money.
An excerpt from the article:
People are reluctant spenders due to both personality and habit, says Meir Statman, a professor at Santa Clara University, in Santa Clara, Calif. Successful savers have prospered by living below their means, and over time, that frugality becomes a matter of preference—hardwired, sometimes to an excessive degree.
The first step is to find appealing spending options. "I can afford a $300 meal, but it makes me feel stupid -- like the chef is in the back laughing uproariously," says Statman. You may have zero interest in fancy restaurants or luxury cruises. But like Statman, you might discover that flying business class is worth every penny. Or you may gain the confidence to continue driving by upgrading to a car with the latest safety features.
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