Similar Search Results

Obfuscation, Learning, and the Evolution of Investor Sophistication

Carlin, Bruce Ian - 2009

Investor sophistication has lagged behind the growing complexity of retail financial markets. To explore this, we develop a dynamic model to study the interaction between obfuscation and investor sophistication. Taking into account different learning mechanisms within the investor population, we...

Persistent link: https://www.econbiz.de/10012463695

Diversification and the Optimal Construction of Basis Portfolios

Lehmann, Bruce N. - 2003

Nontrivial diversification possibilities arise when a factor model describes security returns. In this paper, we …

Persistent link: https://www.econbiz.de/10012469242

How Will Persistent Low Expected Returns Shape Household Economic Behavior?

Horneff, Vanya - 2018

Many believe that global capital markets will generate lower returns in the future versus the past. We examine how persistently lower real returns will reshape work, retirement, saving, and investment behavior of older persons using a calibrated dynamic life cycle model. In a low return regime,...

Persistent link: https://www.econbiz.de/10012480785

Optimal retirement benefit guarantees

Panageas, Stavros - 2010

Retirement benefit guarantees can ensure a minimum standard of living in retirement. I propose a framework to discuss the design of such guarantees. The model features a standard life-cycle setting, in which individual agents' choices can have negative external effects on public finances,...

Persistent link: https://www.econbiz.de/10012462845

Individual Account Investment Options and Portfolio Choice : Behavioral Lessons from 401(k) Plans

Brown, Jeffrey R. - 2007

This paper examines how the menu of investment options made available to workers in defined contribution plans influences portfolio choice. Using unique panel data of 401(k) plans in the U.S., we present three principle findings. First, we show that the share of investment options in a...

Persistent link: https://www.econbiz.de/10012465484

Optimizing the Retirement Portfolio : Asset Allocation, Annuitization, and Risk Aversion

Horneff, Wolfram J. - 2006

Retirees must draw down their accumulated assets in an orderly fashion so as not to exhaust their funds too soon. We derive the optimal retirement portfolio from a menu that includes payout annuities as well as an investment allocation and a withdrawal strategy, assuming risk aversion,...

Persistent link: https://www.econbiz.de/10012466273

Simplifying Choices in Defined Contribution Retirement Plan Design

Keim, Donald B. - 2016

In view of the growth and popularity of defined contribution pensions, along with the government's growing attention to retirement plan costs and investment choices provided, it is important to understand how people select their retirement plan investments. This paper shows how employees in a...

Persistent link: https://www.econbiz.de/10012456818

Fixed and Variable Longevity Annuities in Defined Contribution Plans : Optimal Retirement Portfolios Taking Social Security into Account

Horneff, Vanya; Maurer, Raimond; Mitchell, Olivia S. - National Bureau of Economic Research - 2023

This paper investigates retirees' optimal purchases of fixed and variable longevity income annuities using their defined contribution (DC) plan assets and given their expected Social Security benefits. As an alternative, we also evaluate using plan assets to boost Social Security benefits...

Persistent link: https://www.econbiz.de/10013537747

Naïve *Buying* Diversification and Narrow Framing by Individual Investors

Gathergood, John - 2019

portfolio diversification--NPD) or engage in naïve buying diversification (NBD)--equally balancing values in same-day purchases … analysis suggests that NBD substantially reduces investor welfare. These findings suggest that behavioral finance theory should …

Persistent link: https://www.econbiz.de/10012479521

Is the International Diversification Potential Diminishing? Foreign Equity Inside and Outside the US

Lewis, Karen K. - 2006

would imply about the diversification potential across countries. For this purpose, I examine two basic groups of … group since this is the standard approach in the international diversification literature, while I study the second group … since some have argued that US-listed foreign stocks are the more natural diversification vehicle (Errunza et al (1999)). In …

Persistent link: https://www.econbiz.de/10012465963

1
2
3
4
5
6
7
8
9
10
Next
Last