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dc.contributor.authorFox, G
dc.contributor.authorWest, J
dc.contributor.authorDrew, M
dc.date.accessioned2017-05-03T12:48:21Z
dc.date.available2017-05-03T12:48:21Z
dc.date.issued2012
dc.date.modified2013-06-12T23:08:29Z
dc.identifier.issn1363-0539
dc.identifier.doi10.1057/fsm.2012.21
dc.identifier.urihttp://hdl.handle.net/10072/51450
dc.description.abstractDefined contribution pension plans typically rely on some type of lifecycle allocation investment strategy. This approach has recently been shown to be sub-optimal due to the portfolio size effect. The terminal wealth of individuals with steadily increasing earnings over time is significantly less when using a lifecycle strategy compared with a simple contrarian approach. The adverse effect of an inappropriate asset allocation strategy for investors with unorthodox earnings profiles, such as for professional athletes, can be greatly magnified. We demonstrate that strategies that exploit the portfolio size effect vastly dominates terminal wealth earned using lifecycle strategies for individuals who experience unorthodox earning profiles, particularly those generating high investable incomes early in life. While the lifecycle strategy contains some attractive features relating to risk aversion and diminishing utility from wealth, we demonstrate that for unorthodox earnings profiles the case for taking advantage of the portfolio size effect is particularly strong.
dc.description.peerreviewedYes
dc.description.publicationstatusYes
dc.languageEnglish
dc.language.isoeng
dc.publisherPalgrave Macmillan
dc.publisher.placeUnited Kingdom
dc.relation.ispartofstudentpublicationN
dc.relation.ispartofpagefrom273
dc.relation.ispartofpageto283
dc.relation.ispartofissue4
dc.relation.ispartofjournalJournal of Financial Services Marketing
dc.relation.ispartofvolume17
dc.rights.retentionY
dc.subject.fieldofresearchFinance
dc.subject.fieldofresearchMarketing
dc.subject.fieldofresearchcode350202
dc.subject.fieldofresearchcode3506
dc.titleWealth portfolios and elite professional athletes
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
gro.facultyGriffith Business School, Department of Accounting, Finance and Economics
gro.date.issued2012
gro.hasfulltextNo Full Text
gro.griffith.authorDrew, Michael E.


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    Contains articles published by Griffith authors in scholarly journals.

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