Teaching Money Sense to Children

The WSJ today reports on academic studies that address the most effective ways to teach children about money.  The results might surprise some.   Read the full article here.  Some key take aways:  (1)  teach math, not finance.   (2)  teach particular financial facts when it’s timely to do so.  Since retention rates are low, “just in time” teaching is more effective than trying to cram a young mind full of facts.


Investor trust fragile, aligned interests valued highly

The CFA Institute & Edelman Investor Trust Study examines trust by investors in investment managers, and explores what dimensions influence trust.  The results of this research are summarized in the following slide presentation and accompanying video.

72(t) Questions – Modifying a SOSEPP

Natalie Choate discusses early withdrawals from IRAs through a “series of substantial equal periodic payments,” including some of the common questions and pitfalls regarding these so-called 72(t) or SOSEPP distributions.

She writes:  ”Under the SOSEPP exception, payments made before age 59 1/2 that are part of a SOSEPP are exempt from penalty. The series can be designed using any of several IRS-approved methods. However, if the series is “modified” in any way prior to attaining age 59 1/2 (or within five years of starting the series, if later), the exemption is lost retroactively.  Frequent questions arise around what constitutes this dreaded “modification” of a SOSEPP…”

Read her full article here.

Social Security

Doug Nguyen and Andrew Salata of the Social Security Administration clarify retiree confusion about the impacts of age, marriage, divorce, and do-overs on retirement benefits.  Watch the interview they gave to Morningstar’s Christine Benz.