Featured Jobs
|
Defined Contribution Account Manager Nova 401(k) Associates
|
|
PPS Pension Services
|
|
MAP Retirement
|
|
Retirement Plan Onboarding Specialist Compass
|
|
Frank Pension Consultants, Ltd.
|
|
DWC - The 401(k) Experts
|
|
Relationship Manager - Defined Contributions Daybright Financial
|
|
DWC - The 401(k) Experts
|
Free Newsletters
“BenefitsLink continues to be the most valuable resource we have at the firm.”
-- An attorney subscriber
|
|
|
The Case for Stock in Pension Funds (PDF)
American Academy of Actuaries 
Dec. 31, 2007
6 pages. Excerpt: The primary goal of this article is to show that stock investments are justified when the cash flows contain economic risk. Moreover, the appropriate discount rate is the expected rate of return of a cash-flow-matching portfolio rather than the risk-free rate. In fact, if the cash flows have economic risk that can be hedged in the market, investing 100 percent of the portfolio in bonds actually increases risk and discounting at the risk-free rate inaccurately represents the liability. These ideas are supported by the principles of financial economics and, in fact, clarify some of the myths about financial economics.
|
| Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the linked news item's title). |
| An important word about authorship: BenefitsLink® created this link to the news item, but we are not the news item's author (unless expressly shown above). |