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I consider in this paper the impact of insider trading regulation (ITR) on a securities market and on social welfare, and suggest that society would be better off if ITR were eliminated. In addition, acknowledging that such an abrupt change in policy is not likely to be made, at least in the...
Persistent link: https://www.econbiz.de/10012790110
The failure rate is arguably the variable most widely used in the evaluation of retirement strategies. Its main shortcoming, evaluating how often a strategy fails but not by how much it does, is overcome by shortfall years, which considers precisely this information. The joint use of the failure...
Persistent link: https://www.econbiz.de/10012958443
Standard analysis of retirement strategies involves evaluating their failure rate. One of the shortcomings of this approach is that a strategy may have a low failure rate and at the same time leave large unintended bequests. Maximum withdrawal rates, by definition, exhaust a portfolio by the end...
Persistent link: https://www.econbiz.de/10012902323
The relevance of determining how often a retirement strategy failed in the past, and how likely it is to fail in the future, can hardly be overstated. For this reason, the failure rate has become an essential tool when evaluating these strategies. However, this variable is silent about how long...
Persistent link: https://www.econbiz.de/10012902788
Warren Buffett has consistently advised investors to follow a simple approach, diversifying broadly and minimizing costs. In fact, he recommended the trustee that will manage his wife's bequest to stick to a simple 90-10 stock-bond portfolio. Is this a sensible strategy for retirees in general?...
Persistent link: https://www.econbiz.de/10012903090
Alternatives have become an important asset for institutional investors, and more recently also for individual investors. Many alternatives are easily investable nowadays, and the focus of this article is on two of the most widely used, namely, gold and REITs, representing exposure to...
Persistent link: https://www.econbiz.de/10012903366
One of the most important decisions retirees need to make is the asset allocation of their portfolios. They can have a static or a dynamic allocation, and simplicity usually favors the former. Warren Buffett recently added another vote for static allocations by revealing that he had advised a...
Persistent link: https://www.econbiz.de/10012903879
All individuals need to decide how much to save during their working years, how much to spend during retirement, and the asset allocation of their portfolio in both periods. A portfolio's exposure to stocks and bonds affects key variables, such as the probability of portfolio failure, the degree...
Persistent link: https://www.econbiz.de/10012904486
Small-cap stocks are typically viewed as riskier than large-cap stocks, and value stocks as riskier than growth stocks. But are they? It depends, both on an investor's holding period and the way he assesses risk. If an investor is concerned with volatility, either during or at the end of the...
Persistent link: https://www.econbiz.de/10012904807
Target-date funds have become a core product for investors saving for retirement. These funds periodically reduce their allocation to stocks, and increase their allocation to bonds and cash, thus becoming more conservative as retirement approaches. This lifecycle strategy implies that investors...
Persistent link: https://www.econbiz.de/10012905413