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/biz/ - Business & Finance

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15571796 No.15571796 [Reply] [Original]

> We find that people should be holding much more stock when young. In fact, their allocation should be more than 100% in stocks. In their early working years, peopleshould invest on a leveraged basis in a diversified portfolio of stocks. Over time, they should decrease their leverage and ultimately become unleveraged as they come closer to retirement. The lifetime impact of the misallocation is large. The expected gain from this improved asset allocation relative to traditional life-cycle investments would lead to 90% higher retirement wealth. This would allow people to retire nearly six years earlier or to retire at the same age (65) and yet maintain their standard of living through age 112 rather than age 85.2

http://faculty.som.yale.edu/barrynalebuff/LifecycleInvestingLeverage_v2008.pdf

Why are you not borrowing money to invest if you are under 30?

>> No.15572003

>>15571796
Good thing I own TQQQ and am 1.5x leveraged in ethereum
Media hates on leverage, academia says it's good. Hmm

>> No.15572011

>>15571796
Young fags should be yoloing their student loans before the commies take over. Let someone else take the "risk"

>> No.15572043

>>15571796
Because a) young people don't know how to invest properly and lose a lot in their first attempts at investments, and b) not having any debt is much more better than watching charts anxiously 24/7 (for your mental health at least).

>> No.15572073

>>15572011
this but 100% serious. You're literally a fucking cuck if you're not taking on student loans to gamble on crypto.

>> No.15572081

>>15571796
>We find that people should be holding much more stock when young.
No fucking shit Sherlock we also find that it's beneficial to be born to rich parents and breath oxygen.

The absolute fucking state of academia lmao.

>> No.15572103

>>15571796
As a youngfag I'm Just stacking cash for the recession then going all in on index's leveraging them seems legit once recovery begins

>> No.15572118

>>15571796
>In fact, their allocation should be more than 100% in stocks

more than 100%? How can you invest more than everything you have?

>> No.15572161

>>15572118
thats where the leverage comes in

>> No.15572187

>>15572073
what a country...
it never stops to amaze me

>> No.15572314

so yale's saying that it's alright that i put $10,000 into BTC at 10.2k on a 0% APR credit card for 15 months?

>> No.15572962

is that a boy or an underage girl?

>> No.15573006

>>15572314
Yes

Yale would advise you to do TWO credit cards