New Study by Gisung Moon and Colleagues Presents Retirement Wealth Accumulation Model to Enhance Finance Pedagogy
A new study by Turner College finance professor, and chair of the Department of Accounting and Finance, Gisung Moon, along with Hongbok Lee and Zhiqiang Yang of Western Illinois University and Doug Waggle of the University of North Florida extends the finance pedagogy literature related to the wealth accumulation stage of retirement planning using techniques that rely heavily on understanding the time value of money (TVM) concepts. The study provides a step-by-step explanation of a retirement wealth accumulation model, accompanied by a detailed numerical example ready for use in the classroom. In doing so, Moon and his colleagues present a systematic approach to estimate the retirement nest egg and the target return required to achieve the nest egg. The estimated target return is suggested as a primary determinant of an investor’s asset allocation for retirement wealth accumulation. Their approach, which is set to appear in a future issue of Managerial Finance, directly links the estimated nest egg with a target return estimation and asset allocation decisions.
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