Showing 1 - 10 of 8,597
Do timing and time diversification improve the average investor?s stock market return? Contrary to literature?s scenario of wealthy investors, average investors invest each month over life. Many purchases prevent investors from buying at peak, but horizons decrease, giving latter investments...
Persistent link: https://www.econbiz.de/10010345247
A sustainable standard of living at retirement is an issue of great importance for most retirees, and is certainly a major consideration in the allocation of client portfolios for private wealth managers. This study uses historical returns and incorporates boot strapping techniques to determine...
Persistent link: https://www.econbiz.de/10013064380
A comparison of the performances of pension products that ignores long-term trends might significantly overestimate the long-term impact of volatility risks while underestimating the impact of persistent, low frequency trends. This paper proposes a comparison making use of projection models...
Persistent link: https://www.econbiz.de/10013291495
Historic returns from 1926 to present are commonly used to predict future returns when planning retirement withdrawals. This paper examines the accuracy of historic returns for predicting future returns, implications of historic returns for setting withdrawal rates, and the ramifications for...
Persistent link: https://www.econbiz.de/10013127595
We show that the net corporate payout yield predicts both the stock market index and house prices and that the log home rent-price ratio predicts both house prices and labor income growth. We incorporate the predictability in a rich life-cycle model of household decisions involving consumption...
Persistent link: https://www.econbiz.de/10011478878
Data obtained from monthly Gallup/UBS surveys from 1998-2007 and from a special supplement to the Michigan Surveys of Consumer Attitudes, run in 22 monthly surveys between 2000-2005, are used to analyze stock market beliefs and portfolio choices of household investors. We show that the key...
Persistent link: https://www.econbiz.de/10013097321
This paper examines the impact of strategic asset allocation on total returns of investment portfolios. It aims to confirm the results of previous studies using US investment data that found strategic asset allocation dominating the other investment decisions namely market timing and security...
Persistent link: https://www.econbiz.de/10013099176
This stochastic simulation analysis examines the risk characteristics of target-date funds focusing on the trade-offs between wealth creation and security. The dynamic portfolio adjustment of marketed target-date funds, with varied asset allocations, along age and various time horizons is shown....
Persistent link: https://www.econbiz.de/10013158197
Mutual funds hold 32% of the U.S. equity market and comprise 58% of retirement savings, yet retail investors consistently make poor choices when selecting funds. Theory suggests that poor choices are partially due to mutual fund managers creating unnecessarily complex disclosures and fee...
Persistent link: https://www.econbiz.de/10012841311
In a calibrated consumption-portfolio model with stock, housing, and labor income predictability, we evaluate the welfare effects of predictability on life-cycle consumption-portfolio choice. We compare skilled investors who are able to take advantage of all sources of predictability with...
Persistent link: https://www.econbiz.de/10012936406