RT Journal Article
SR Electronic
T1 Asset Allocation Options for Wealth Accumulation
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 22
OP 27
DO 10.3905/jwm.2012.14.4.022
VO 14
IS 4
A1 Bala Arshanapalli
A1 William Nelson
YR 2012
UL https://pm-research.com/content/14/4/22.abstract
AB What is the best asset allocation scheme for retirement investing and wealth accumulation? The authors examine seven schemes, including the “110 minus age” rule of thumb and strategies employed by popular retirement mutual funds. Historically, the 100% equity portfolio has offered the highest returns with little extra risk. However, if the authors lower equity premiums or bootstrap historical results, then retirement mutual funds and the “110 minus age“ rule of thumb perform somewhat better than 100% equity portfolios in adverse circumstances. But overall, a 100% equity portfolio provides the highest wealth accumulation.TOPICS: Retirement, mutual funds/passive investing/indexing, performance measurement