Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
An Assessment Of Life Cycle Funds
Download An Assessment Of Life Cycle Funds full books in PDF, epub, and Kindle. Read online An Assessment Of Life Cycle Funds ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Book Synopsis An Assessment of Life-Cycle Funds by : Mauricio Soto
Download or read book An Assessment of Life-Cycle Funds written by Mauricio Soto and published by . This book was released on 2008 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: Life-cycle funds offer an intuitive approach to retirement investing. Despite their intuitive appeal, the empirical and theoretical support for life-cycle funds is mixed. We examine life-cycle funds using dynamic optimization techniques to evaluate the optimal asset allocation over the life cycle. In our modeling we introduce a utility function that accounts for the individual's taste for bearing risk and analyze the role of human capital on allocation decisions. The simulations generally support the use of target retirement date funds once human capital is taken into account. Investment fees, however, could potentially erode any increased asset levels that life-cycle funds create. Ultimately, an appropriate asset allocation depends on individuals' objectives and the opportunities available in financial markets.
Download or read book Lifecycle Investing written by Ian Ayres and published by ReadHowYouWant.com. This book was released on 2010-05 with total page 358 pages. Available in PDF, EPUB and Kindle. Book excerpt: Diversification provides a well-known way of getting something close to a free lunch: by spreading money across different kinds of investments, investors can earn the same return with lower risk (or a much higher return for the same amount of risk). This strategy, introduced nearly fifty years ago, led to such strategies as index funds. What if we were all missing out on another free lunch that’s right under our noses? InLifecycle Investing, Barry Nalebuff and Ian Ayres-two of the most innovative thinkers in business, law, and economics-have developed tools that will allow nearly any investor to diversify their portfolios over time. By using leveraging when young-a controversial idea that sparked hate mail when the authors first floated it in the pages ofForbes-investors of all stripes, from those just starting to plan to those getting ready to retire, can substantially reduce overall risk while improving their returns. InLifecycle Investing, readers will learn How to figure out the level of exposure and leverage that’s right foryou How the Lifecycle Investing strategy would have performed in the historical market Why it will work even if everyone does it Whennotto adopt the Lifecycle Investing strategy Clearly written and backed by rigorous research,Lifecycle Investingpresents a simple but radical idea that will shake up how we think about retirement investing even as it provides a healthier nest egg in a nicely feathered nest.
Book Synopsis Pay Yourself First by : Timothy W. Cunningham
Download or read book Pay Yourself First written by Timothy W. Cunningham and published by John Wiley & Sons. This book was released on 1996-09-28 with total page 292 pages. Available in PDF, EPUB and Kindle. Book excerpt: Written by the founders of the Life Cycle Mutual Funds, a revolutionary age- and solution-based family of mutual funds, this guide demystifies the principles of retirement investing and shows readers how to take charge of their financial future. Using real-life anecdotes and examples, this text focuses on the human element involved in retirement planning. 20 charts.
Book Synopsis Optimal Life-Cycle Investing with Flexible Labor Supply by : Francisco Gomes
Download or read book Optimal Life-Cycle Investing with Flexible Labor Supply written by Francisco Gomes and published by . This book was released on 2010 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate optimal consumption, asset accumulation and portfolio decisions in a realistically calibrated life-cycle model with flexible labor supply. Our framework allows for wage rate uncertainly, variable labor supply, social security benefits and portfolio choice over safe bonds and risky equities. Our analysis reinforces prior findings that equities are the preferred asset for young households, with the optimal share of equities generally declining prior to retirement. However, variable labor materially alters pre-retirement portfolio choice by significantly raising optimal equity holdings. Using this model, we also investigate the welfare costs of constraining portfolio allocations over the life cycle to mimic popular default investment choices in defined-contribution pension plans, such as stable value funds, balanced funds, and life-cycle (or target date) funds. We find that life-cycle funds designed to match the risk tolerance and investment horizon of investors have small welfare costs. All other choices, including life-cycle funds which do not match investors' risk tolerance, can have substantial welfare costs.
Book Synopsis Life Cycle Investing and Occupational Old-Age Provision in Switzerland by : Florian Zainhofer
Download or read book Life Cycle Investing and Occupational Old-Age Provision in Switzerland written by Florian Zainhofer and published by Springer Science & Business Media. This book was released on 2008-08-01 with total page 298 pages. Available in PDF, EPUB and Kindle. Book excerpt: Florian Zainhofer uses the theory of life cycle investing as a framework to study the implications of a potential BVG individualization. He proposes a model adapted to Swiss conditions and parameterized with estimated Swiss earnings dynamics.
Book Synopsis Optimal Life-cycle Investing with Flexible Labor Supply by : Francisco J. Gomes
Download or read book Optimal Life-cycle Investing with Flexible Labor Supply written by Francisco J. Gomes and published by . This book was released on 2008 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate optimal consumption, asset accumulation and portfolio decisions in a realistically calibrated life-cycle model with flexible labor supply. Our framework allows for wage rate uncertainly, variable labor supply, social security benefits and portfolio choice over safe bonds and risky equities. Our analysis reinforces prior findings that equities are the preferred asset for young households, with the optimal share of equities generally declining prior to retirement. However, variable labor materially alters pre-retirement portfolio choice by significantly raising optimal equity holdings. Using this model, we also investigate the welfare costs of constraining portfolio allocations over the life cycle to mimic popular default investment choices in defined-contribution pension plans, such as stable value funds, balanced funds, and life-cycle (or target date) funds. We find that life-cycle funds designed to match the risk tolerance and investment horizon of investors have small welfare costs. All other choices, including life-cycle funds which do not match investors' risk tolerance, can have substantial welfare costs.
Book Synopsis Evaluating the Financial Performance of Pension Funds by : Richard Hinz
Download or read book Evaluating the Financial Performance of Pension Funds written by Richard Hinz and published by World Bank Publications. This book was released on 2010-01-14 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt: Countries around the world are increasingly relying on individual pension savings accounts to provide income in old age for their citizens. Although these funds have now been in place for several decades, their performance is usually measured using methods that are not meaningful in relation to this long-term objective. The recent global financial crisis has highlighted the need to develop better performance evaluation methods that are consistent with the retirement income objective of pension funds. Compiling research derived from a partnership among the World Bank, the Organisation for Economic Co-operation and Development (OECD), and three private partners, 'Evaluating the Financial Performance of Pension Funds' discusses the theoretical basis and key implementation issues related to the design of performance benchmarks based on life-cycle savings and investment principles. The book begins with an evaluation of the financial performance of funded pension systems using the standard mean variance framework. It then provides a discussion of the limitations inherent to applying these methods to pension funds and outlines the many other issues that should be addressed in developing more useful and meaningful performance measures through the formulation of pension-specific benchmark portfolios. Practical implementation issues are addressed through empirical examples of how such benchmarks could be developed. The book concludes with commentary and observations from several noted pension experts about the need for a new approach to performance measurement and the impact of the recent global financial crisis on pension funds.
Book Synopsis The Ages of the Investor by : William J. Bernstein
Download or read book The Ages of the Investor written by William J. Bernstein and published by Createspace Independent Publishing Platform. This book was released on 2012-08-28 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The Ages of the Investor: A Critical Look at Life-cycle Investing" is intended to be the first installment in the "Investing for Adults" series. Just as grown-ups do not believe in the Tooth Fairy, the Easter Bunny, or Santa Claus, "Investing adults" know that there is no such creature as the Stock-picking Fairy or the Market-timing Fairy. Further, there is no Risk Fairy who will write you cheap options that will protect your stock holdings against loss. Investing adults are familiar with Gene Fama, Zvi Bodie, Jack Bogle, and Burton Malkiel, and understand that a mean variance optimizer does not blend vegetables. In other words, this series is not for beginners. Future topics will, with luck, include the limits of market efficiency and diversification in increasingly non-segmented global markets.
Book Synopsis Environmental Impacts of Conventional and Sustainable Investment Funds Compared Using Input-Output Life-Cycle Assessment by : Thomas Koellner
Download or read book Environmental Impacts of Conventional and Sustainable Investment Funds Compared Using Input-Output Life-Cycle Assessment written by Thomas Koellner and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study compares equity funds that are managed according to sustainability goals with conventionally managed funds with respect to their environmental impacts. Overlap in the portfolios of sustainable equity funds and conventional equity funds can be very large. Further, the sector allocation of both types of funds is generally very similar, because portfolio managers follow a chosen benchmark to minimize risk. These two effects may result in no difference existing between the two types of funds in terms of their environmental impact and damage (null hypothesis of this research). This study comparatively assesses the environmental impact of portfolios of 26 investment funds: 13 sustainable investment funds and 13 conventional funds, which are managed according to the benchmark MSCI World. The study applies input-output life-cycle assessment (IO-LCA) in combination with a simulation of company-specific environmental performance. The environmental impact is evaluated per functional unit for each fund, measured as the risk-adjusted financial performance. The statistical analysis showed that the analyzed sustainable investment funds performed better with respect to environmental impact assessment but worse in economic risk-adjusted performance (RAP) over the period 2000-2004. In 2004, however, the RAP of the selected sustainable investment funds showed better performance. Both samples considerably overlap for the environmental and economic parameters. The results suggest that the environmental impact of sustainable investment funds in the sample is slightly less than that of conventional funds.
Book Synopsis Life-Cycle Funds by : Luis M. Viceira
Download or read book Life-Cycle Funds written by Luis M. Viceira and published by . This book was released on 2008 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews recent advances in academic models of asset allocation for long-term investors, and explores their implications for the design of investment products that help investors save for retirement, particularly life-cycle funds and life-style (or balanced) funds. The paper argues that modern portfolio theory provides scientific foundation for the quot;risk-basedquot; asset allocation strategies and the quot;age-basedquot; asset allocation strategies that characterize life-style and life-cycle funds. Risk-based allocation strategies can be optimal in an environment where investors face real interest rate (or reinvestment risk), while human wealth considerations give rise to horizon effects in asset allocation. However, this theory also makes a number of suggestions about how life-style and life-cycle funds should be structured, and shows for which types of investors these funds are appropriate investment choices. Thus, modern portfolio theory provides only qualified support for these funds. Nevertheless, the paper argues that properly designed life-cycle funds are better default investment choices than money market funds in defined-contribution pension plans. The paper also argues for the creation of life-cycle funds that allow for heterogeneity in risk tolerance, and for the creation of life-cycle funds specific to defined-contribution plans that can better account for the correlation between human capital and stock returns. It also suggests that investors who expect to receive Social Security benefits and pension income after retirement should choose a target retirement date for their funds based on their life-expectancy, not their expected retirement date.
Book Synopsis Swing Pricing and Fragility in Open-end Mutual Funds by : Dunhong Jin
Download or read book Swing Pricing and Fragility in Open-end Mutual Funds written by Dunhong Jin and published by International Monetary Fund. This book was released on 2019-11-01 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: How to prevent runs on open-end mutual funds? In recent years, markets have observed an innovation that changed the way open-end funds are priced. Alternative pricing rules (known as swing pricing) adjust funds’ net asset values to pass on funds’ trading costs to transacting shareholders. Using unique data on investor transactions in U.K. corporate bond funds, we show that swing pricing eliminates the first-mover advantage arising from the traditional pricing rule and significantly reduces redemptions during stress periods. The positive impact of alternative pricing rules on fund flows reverses in calm periods when costs associated with higher tracking error dominate the pricing effect.
Book Synopsis Making Investment Choices as Simple as Possible by : Zvi Bodie
Download or read book Making Investment Choices as Simple as Possible written by Zvi Bodie and published by . This book was released on 2008 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many participants in self-directed retirement plans (401k, IRA, etc.) do not know enough about investing to choose rationally among alternatives. Others may know enough, but find it unpleasant or too time-consuming. Target-date funds (TDFs), also known as life-cycle funds, are being offered as a simple solution to their dilemma. A TDF is a quot;fund of fundsquot; diversified across stocks, bonds, and cash with the feature that the proportion invested in stocks is automatically reduced as time passes. Empirical evidence suggests that a simple TDF strategy would be an improvement over the choices currently made by many uninformed plan participants. This paper explores one way to achieve an even greater improvement. Using a compact continuous-time optimization model, we characterize a person for whom a TDF strategy would be optimal: a quot;natural TDF holder.quot; We then show that the TDF strategy may be far from optimal for people who ő although of the same age ő differ from the natural TDF holder in their risk aversion or exposure to human-capital risk. To bring such plan participants much closer to their optimal strategy it is enough to add a second simple investment alternative ő a safe fund matched to their time horizon. Participants with the same time horizon could then choose (or be advised to choose) either the TDF or the safe target-date fund depending on their risk aversion and human-capital risk. We find that people who are very risk averse and who have a high exposure to market risk through their labor income would experience a substantial gain in welfare from being offered a safe target-date fund rather than a risky one. Recent empirical research suggests that human-capital betas change over one's working career. They are typically quite high during the early years when human capital represents the largest part of total wealth for most people, and they decline with age. To reflect gradual changes in human capital risk over the life-cycle from predominantly quot;stock-likequot; to mostly quot;bond-like,quot; TDFs should switch from a quot;linearquot; strategy to a quot;hump-shapedquot; strategy with respect to age.
Book Synopsis Life Cycle Analysis Procedures and Techniques by : K. E. Marks
Download or read book Life Cycle Analysis Procedures and Techniques written by K. E. Marks and published by . This book was released on 1977 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: A briefing discussing the application of life cycle analysis to the evaluation of proposed investments of R & D and procurement funds. The primary focus of this study has been on aircraft systems and on decisions involving program changes and modifications to systems already in acquisition. In summary, it was observed that present procedures and techniques for making life cycle cost estimates can lead to decisions that have effects opposite to what the decisionmaker is seeking. Opportunities to reduce overall costs may be missed. R & D funds may be invested without achieving an expected O & S cost reduction, thereby increasing life cycle cost. The establishment of a uniform set of procedures for conducting and presenting the results of life cycle analyses should help in two ways. It would compensate for some of the shortcomings of current models and data, and it would provide a useful basis for the development of improved estimating techniques in the future.
Book Synopsis Dynamic Lifecycle Strategies for Target Date Retirement Funds by : Anup K. Basu
Download or read book Dynamic Lifecycle Strategies for Target Date Retirement Funds written by Anup K. Basu and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Lifecycle funds offered to retirement plan participants gradually reduce their exposure to stocks as they approach the target date of retirement. We show that such deterministic switching rules produce inferior wealth outcomes for the investor compared to strategies that dynamically alter the allocation between growth and conservative assets based on cumulative portfolio performance relative to a set target. The dynamic allocation strategies proposed in this paper exhibit almost stochastic dominance (ASD) over strategies that switch assets unidirectionally without consideration of portfolio performance.
Book Synopsis Life Cycle Assessment by : Kathrina Simonen
Download or read book Life Cycle Assessment written by Kathrina Simonen and published by Routledge. This book was released on 2014-04-16 with total page 182 pages. Available in PDF, EPUB and Kindle. Book excerpt: Life Cycle Assessment addresses the dynamic and dialectic of building and ecology, presenting the key theories and techniques surrounding the use of life cycle assessment data and methods. Architects and construction professionals must assume greater responsibility in helping building owners to understand the implications of making material, manufacturing, and assemblage decisions and therefore design to accommodate more ecological building. Life Cycle Assessment is a guide for architects, engineers, and builders, presenting the principles and art of performing life cycle impact assessments of materials and whole buildings, including the need to define meaningful goals and objectives and critically evaluate analysis assumptions. As part of the PocketArchitecture Series, the book includes both fundamentals and advanced topics. The book is primarily focused on arming the design and construction professional with the tools necessary to make design decisions regarding life cycle, reuse, and sustainability. As such, the book is a practical text on the concepts and applications of life cycle techniques and environmental impact evaluation in architecture and is presented in language and depth appropriate for building industry professionals.
Book Synopsis Guidelines for Social Life Cycle Assessment of Products by : United Nations Environment Programme
Download or read book Guidelines for Social Life Cycle Assessment of Products written by United Nations Environment Programme and published by UNEP/Earthprint. This book was released on 2009 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Guidelines for Social Life Cycle Assessment of Products provides a map, a skeleton and a flash light for stakeholders engaging in the assessment of social and socio-economic impacts of products life cycle. The map describes the context, the key concepts, the broader field in which tools and techniques are getting developed and their scope of application. The skeleton presents key elements to consider and provide guidance for the goal and scope, inventory, impact assessment and interpretation phases of a social life cycle assessment. The flash light highlights areas where further research is needed. Social Life Cycle Assessment is a technique available to account for stories and inform systematically on impacts that otherwise would be lost in the vast and fast moving sea of our modern world. May it help stakeholders to effectively and efficiently engage to improve social and socio-economic conditions of production and consumption
Book Synopsis Contingent Claims Analysis and Life Cycle Finance by : Zvi Bodie
Download or read book Contingent Claims Analysis and Life Cycle Finance written by Zvi Bodie and published by . This book was released on 2012 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores the application of contingent claims analysis (CCA) to two quot;hotquot; issues in life-cycle finance: (1) investing for retirement and (2) deciding when, if ever, to switch careers. Participants in individual retirement accounts do not have the time or the knowledge to make their own investment decisions. Today they are defaulted into life-cycle mutual funds that pass all risk directly through to the participant. We use CCA to demonstrate how financial firms can design and produce guaranteed contingent benefit contracts that improve participant welfare at no additional cost to the system. In exploring the career-choice issue in the second part of the paper, we use CCA in a somewhat different way. The decision to switch careers is analogous to deciding when to exercise an American-style option to swap one asset for another. By applying the methods used to analyze the option-exercise decision to the career-switching problem, we gain some new insights beyond those derived from the traditional dynamic programming approaches.
