Aron Gottesman, Professor of Finance at Pace University’s Lubin School of Business, recently spoke to CNBC’s Mark Koba about managing 401(k) retirement plans. According to a recent survey from Charles Schwab, most Americans don’t know how to handle their 401(k) and find their investment plans more confusing than their company health care benefits. “Most Americans don’t know how to allocate or distribute their assets inside the 4019(k),” Gottesman told CNBC. “Should they go into stocks or bonds, or both? And how much should it be? They’re confused.”
Gottesman specifically points to risk management as the source of much of this confusion. “A big part of this for people is knowing how much risk to take with their money,” he said. “And they get mixed messages about the markets from the media. Some person says buy this stock or fund; another one says sell it. People don’t know what to do.” Ultimately Gottesman encourages Americans to prioritize their research into their 401(k) plans in order to get the most benefit.
Gottesman is the Chair of the Department of Finance and Economics at Lubin. He teaches graduate and doctoral courses on financial markets, derivative securities, and asset management.
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