Investing and retirement, what to do?
Take a look at this recent article.
Ayres, Ian and Nalebuff, Barry J., "Life-Cycle Investing and Leverage: Buying Stock on Margin Can Reduce Retirement Risk"
(May 27, 2008).
Available at SSRN: http://ssrn.com/abstract=1139110
Abstract: By employing leverage to gain more
exposure to stocks when young, individuals can achieve better
diversification across time. Using stock data going back to 1871, we
show that buying stock on margin when young combined with more
conservative investments when older stochastically dominates standard
investment strategies - both traditional life-cycle investments and
100%-stock investments. The expected retirement wealth is 90% higher
to life-cycle funds and 19% higher compared to 100% stock investments.
The expected gain would allow workers to retire almost six years
earlier or extend their standard of living during retirement by 27
Three recent law review articles by members of the faculty:
Ian Ayres and Gideon Parchomovsky, Tradable Patent Rights, 60 Stan. L. Rev. 863 (2007)
Daniel Markovits, Luck Egalitarianism and Political Solidarity, 9 Theoretical Inquiries L. 271 (2008)
Judith Resnik, No Daubert Hearing Necessary: The Extraordinary Expertise of
Margaret Berger, 16 J.L.
& Pol'y 6 (2007)