Long-Run Returns on Stock and Bond Portfolios

Implications for Retirement Planning

Authors

  • Kirt C. Butler Associate Professor of Finance, Department of Finance and Insurance, The Eli Broad Graduate School of Management, Michigan State University, East Lansing, MI 48824.
  • DaleL. Domian Assistant Professor of Finance, Department of Finance and Insurance, ‘The Eli Broad Graduate School of Management, Michigan State Univet&y, East Lansing, MI 48824.

DOI:

https://doi.org/10.1016/1057-0810(92)90014-4

Abstract

This paper presents asset returns over long aping periods in a form useful for retirement planning. Time diversi~cat~n, heretofore analyzed for lump-sum investments, still serves to reduce the risk of stock investments whenfunds are accumulatedmonth by month, We consider investments infive stock and bond asset classes as well as various asset allocation strategies. Probability distributions are computed for retirement wealth over a range of investment horizons.

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Published

1992-06-30

How to Cite

Butler, K. C., & Domian, D. (1992). Long-Run Returns on Stock and Bond Portfolios: Implications for Retirement Planning. Financial Services Review, 2(1), 41–49. https://doi.org/10.1016/1057-0810(92)90014-4

Issue

Vol. 2 No. 1 (1992): Financial Services Review

Section

New Original Submission

License

Copyright (c) 1992 JAI Press Inc.

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