Value-at-Risk and Conditional Tail Expectations are central tools of modern risk management. As risk measures based on the actual probability distribution, these can eventually decrease with the investment horizon. This is not evidence that stock investments are decreasingly risky in the...

Target-date funds (TDFs) for retirement, also known as life-cycle funds, are being offered as a simple solution to the investment task of participants in self-directed retirement plans. A TDF is a quot;fund of fundsquot; diversified across stocks, bonds, and cash with the feature that the...

Target-date funds are designed with some level of investment risk that declines over time as the target retirement date approaches. It is possible to design a safe target-date fund in terms of market risk — although in terms of meeting a target level of wealth at retirement (or income in...

Both investor contributions and investment returns determine retirement plan outcomes, but they have distinctive effects over the investor's lifecycle. Focusing on target-date funds (TDFs) in 401(k) plans, our research demonstrates that in the early stage, contributions are the primary...

Research fads, which create bubbles in academia, gobble up resources and crowd out exploration of competing ideas. Investment-related academic bubbles have a cost. In the best case, money is lost by investors chasing fragile ideas. In the worst case, the general public suffers real pain when the...

This paper applies the methods of Detemple, Garcia, and Rindisbacher (2003, 2005) and derives explicit optimal lifetime consumption-portfolio plans in an economy whose fixed-income sector is characterized by an N-factor Heath-Jarrow-Morton (1992) model that is Markovian in 3N state variables