So, what's a nudge? A nudge is some small feature of the environment that attracts our attention and alters our behavior.

One simple step firms can take is make sure that people that are getting paid a lot of money, say more than a million or two, that a big chunk of that money is deferred. That's going to change the whole ballgame.

If people just put away what's left at the end of the month, that's a recipe for failure.

When should we nudge and when should we shove, I think, it's a political judgment. Obviously in some situations we need shoves, we need laws. Fraud is against the law, murder is against the law, drunk-driving is against the law. We don't need just nudges.

he card companies will often, as a courtesy, honor that credit card, but hit you with a penalty. And you keep swiping your card for $3 at Starbucks for your latté, and you're getting hit with a $25 penalty because it's over your credit limit.

I think the people who've been the most overconfident in our business in the last decade have been the people that called themselves risk managers.

People exaggerate their own skills. they are optimistic about their prospects and overconfident about their guesses, including which managers to pick.