Owadally, I., Haberman, S. & Gomez, D. (2011). A Savings Plan with Targeted Contributions. Journal of Risk and Insurance, 80(4), pp. 975-1000. doi: 10.1111/j.1539-6975.2012.01485.x
This is the latest version of this item.
Abstract
We consider a simple savings problem where contributions are made to a fund and invested to meet a future liability. The conventional approach is to estimate future investment return and calculate a fixed contribution to be paid regularly by the saver. We propose a flexible plan where contributions are systematically adjusted and targeted. We show by means of stochastic simulations that this plan has a reduced risk of a shortfall and is relatively insensitive to errors in the planner's estimate of future returns. Sensitivity analyses in terms of parameter values, stochastic return models and investment horizons are also performed.
Publication Type: | Article |
---|---|
Additional Information: | This is the peer reviewed version of the following article: Owadally, I., Haberman, S. and Gómez Hernández, D. (2013), A Savings Plan With Targeted Contributions. Journal of Risk and Insurance, 80: 975–1000., which has been published in final form at http://dx.doi.org/10.1111/j.1539-6975.2012.01485.x. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving. |
Subjects: | H Social Sciences > HG Finance |
Departments: | Bayes Business School > Finance Bayes Business School > Actuarial Science & Insurance |
|
Text
- Accepted Version
Download (1MB) | Preview |
Export
Downloads
Downloads per month over past year
Available Versions of this Item
-
A Savings Plan with Targeted Contributions. (deposited 15 Sep 2014 13:58)
- A Savings Plan with Targeted Contributions. (deposited 22 Apr 2016 08:29) [Currently Displayed]