While 'lifecycle investing' has been a marketing success, this paper demonstrates the fallacy of this approach when sold as a gradual risk reduction strategy, and argues that lifecycle investing is rooted more in behavioural finance than in lifetime risk management. A more appropriate approach would be to assess lifetime risk assumed and manage this according to the investor's risk profile.
机构:
Univ Iowa, Dept Mech & Ind Engn, Seamans Ctr 3131, Iowa City, IA 52242 USAUniv Iowa, Dept Mech & Ind Engn, Seamans Ctr 3131, Iowa City, IA 52242 USA
Krokhmal, P
Rockafellar, RT
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机构:
Univ Iowa, Dept Mech & Ind Engn, Seamans Ctr 3131, Iowa City, IA 52242 USAUniv Iowa, Dept Mech & Ind Engn, Seamans Ctr 3131, Iowa City, IA 52242 USA