Eller College of Management Finance Professors Cited in Wall Street Journal

David Brown, associate professor of finance and Brian and Clara Franke Endowed Chair in Finance and Scott Cederburg, associate professor of finance and Thomas R. Moses Endowed Chair in Finance in the Eller College of Management, were cited in a recent Wall Street Journal article about where one should put their retirement money. 

The article compares both traditional and Roth 401(k)’s and explains that each can be beneficial in their own way—depending on one’s needs.

According to Brown’s research, “Once a person moves out of the 12 percent tax bracket, it is best to start dividing savings between a Roth and a traditional account.”

The rule of thumb that he and co-authors Cederburg and Mike O’Doherty recommend is to “add 20 to your age and put that percentage of the money you are saving for retirement into a traditional 401(k), with the rest in a Roth.”

Brown joined the Eller College of Management in 2014 after earning his PhD in Business Administration (Finance) from the University of Colorado Boulder. His areas of research include institutional investors, asset management, price feedback and price informativeness, early-stage financing and IPOs, taxes and retirement planning. Prior to joining academia, he worked in high-frequency algorithmic trading and private student lending where he was involved in several fundraising efforts, ranging from $300,000 to $75 million.

Cederburg is an Associate Professor of Finance and the Thomas C. Moses Endowed Professor in Finance at the Eller College of Management. He earned his PhD in Finance from the University of Iowa. His research focuses on issues related to long-horizon investment outcomes and retirement security, return predictability, and mutual fund performance. His studies have been published in top academic journals, including the Journal of Finance, the Journal of Financial Economics, the Review of Financial Studies, the Journal of Financial and Quantitative Analysis, and the Review of Finance. He won the 2018 TIAA Paul A. Samuelson Award for Outstanding Scholarly Writing on Lifelong Financial Security for his study, "Tax Uncertainty and Retirement Savings Diversification," and his work has been covered by The Wall Street Journal, Bloomberg, Forbes, and Consumer Reports, among other outlets.