Revisiting U.S. Stock Market Returns: Individual Retirement Accounts

A. G. Malliaris

《Advances in Investment Analysis and Portfolio Management》 3期 (2008/11) Pp. 17-38

https://doi.org/10.6291/AIAPM.2008.03.02

並列摘要

Numerous studies have estimated U.S. stock market returns that have been measured by various indexes such as the S&P 500 Index over certain periods. The purpose of this paper is twofold: first we calculate, under certain scenarios, the final total a-ccumulation of a representative individual who invests a certain amount of funds per month during a long investment horizon of about 30 or 40 years. Second, we evaluate the performance of such an investment plan of defined monthly contributions. This evaluation is based on a benefit target and working backwards we compute the necessary monthly contributions. In our calculations we use actual monthly returns of the S&P 500 Index instead of averages obtained from a large sample. We find that accumulations of gradual investments over 30 or 40 years are skewed to the right. In addition, and we compute the probability that a given percentage of contributions will be sufficient to finance certain retirement benefits.

並列關鍵字

Individual Retirement Accounts ； Adequacy of Savings for Retirement ； Individual Retirement Contributions ； Individual Portfolios ； Index Investing ； Investment Horizons

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