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.

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

The assumption that everybody will figure out how much they have to save and then will just implement that plan is obviously preposterous.

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.

Rip Van Winkle would be the ideal stock market investor: Rip could invest in the market before his nap and when he woke up 20 years later, he'd be happy. He would have been asleep through all the ups and downs in between. But few investors resemble Mr. Van Winkle. The more often an investor counts his money - or looks at the value of his mutual funds in the newspaper - the lower his risk tolerance.

There are cases when I can make myself better off by restricting my future choices and commit myself to a specific course of action.