The Aspen Institute

The Aspen Institute Initiative on Financial Security’s new policy brief, “Your Nest Egg on Auto Pilot: The Advantages of RS+ over the R-Bond as Default Investment for the Automatic IRA,” compares the two leading default investment options being considered for the Obama Administration’s proposed Automatic IRA. Using a Monte Carol model to simulate the performance of each investment option over a 40 year horizon, “Your Nest Egg on Auto Pilot” demonstrates the dramatic performance potential of Real Savings + (RS+). As the results show, the simple, low-cost structure of the RS+ offers savers significant upside potential, all the while protecting in full a saver’s contributions from the three most likely risks to retirement savings – inflation, default by the bond issuer, and falling stock prices.