Investors increase the share of equities in their portfolios by about 0.7 percentage points when the return that they expect to earn on stocks rises by 1 percentage point.
Tag: Life-Cycle Investing
As life expectancy increases around the world, investors may soon realize that with longer life also comes a longer liability. Retirement occurs well beyond the "age of 65" as countries around the world increase the retirement ages and eligibility for governmental retirement assistance programs. 2017 Nobel Prizer winner and University of Chicago Booth School of Business Professor Richard Thaler puts it succinctly, "You have to worry about getting unlucky and living to 100."
Building on the themes from the 2006 conference, this proceedings of the 2008 conference explores what the modern science of life-cycle finance implies for households, businesses, and government with a focus on the retirement phase. Source: The CFA Research Institute.