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Catch the dream of financial independence - A study about how you can impact your retirement saving and reach your future financial goal

Hemmesåker, Emilia LU and Nelfelt, Victor LU (2018) NEKN02 20181
Department of Economics
Abstract
This paper takes off in the rapidly growing fields of financial independence and financial
literacy. We develop a model focusing on reaching financial independence during retirement and
mitigate financial decision making for financially illiterate. The model is based on theoretical
research within financial literacy, economic life-cycle and safe withdrawal rates. To ensure
qualified monthly saving recommendations, we perform Monte Carlo simulations in a solid test
section. The results show that it is important to consider volatility in asset returns, a well-known
financial phenomenon that is ignored by most publicly accessible models. Moreover, the model
shows that the factors early start of saving, postponement of retirement and... (More)
This paper takes off in the rapidly growing fields of financial independence and financial
literacy. We develop a model focusing on reaching financial independence during retirement and
mitigate financial decision making for financially illiterate. The model is based on theoretical
research within financial literacy, economic life-cycle and safe withdrawal rates. To ensure
qualified monthly saving recommendations, we perform Monte Carlo simulations in a solid test
section. The results show that it is important to consider volatility in asset returns, a well-known
financial phenomenon that is ignored by most publicly accessible models. Moreover, the model
shows that the factors early start of saving, postponement of retirement and investing saved
capital can substantially improve retirement wealth. (Less)
Popular Abstract
This paper takes off in the rapidly growing fields of financial independence and financial
literacy. We develop a model focusing on reaching financial independence during retirement and
mitigate financial decision making for financially illiterate. The model is based on theoretical
research within financial literacy, economic life-cycle and safe withdrawal rates. To ensure
qualified monthly saving recommendations, we perform Monte Carlo simulations in a solid test
section. The results show that it is important to consider volatility in asset returns, a well-known
financial phenomenon that is ignored by most publicly accessible models. Moreover, the model
shows that the factors early start of saving, postponement of retirement and... (More)
This paper takes off in the rapidly growing fields of financial independence and financial
literacy. We develop a model focusing on reaching financial independence during retirement and
mitigate financial decision making for financially illiterate. The model is based on theoretical
research within financial literacy, economic life-cycle and safe withdrawal rates. To ensure
qualified monthly saving recommendations, we perform Monte Carlo simulations in a solid test
section. The results show that it is important to consider volatility in asset returns, a well-known
financial phenomenon that is ignored by most publicly accessible models. Moreover, the model
shows that the factors early start of saving, postponement of retirement and investing saved
capital can substantially improve retirement wealth. (Less)
Please use this url to cite or link to this publication:
author
Hemmesåker, Emilia LU and Nelfelt, Victor LU
supervisor
organization
course
NEKN02 20181
year
type
H1 - Master's Degree (One Year)
subject
keywords
Keywords: retirement savings, financial independence, financial literacy, safe withdrawal rate
language
English
id
8949108
date added to LUP
2018-07-02 15:39:13
date last changed
2018-07-02 15:39:13
@misc{8949108,
  abstract     = {This paper takes off in the rapidly growing fields of financial independence and financial
literacy. We develop a model focusing on reaching financial independence during retirement and
mitigate financial decision making for financially illiterate. The model is based on theoretical
research within financial literacy, economic life-cycle and safe withdrawal rates. To ensure
qualified monthly saving recommendations, we perform Monte Carlo simulations in a solid test
section. The results show that it is important to consider volatility in asset returns, a well-known
financial phenomenon that is ignored by most publicly accessible models. Moreover, the model
shows that the factors early start of saving, postponement of retirement and investing saved
capital can substantially improve retirement wealth.},
  author       = {Hemmesåker, Emilia and Nelfelt, Victor},
  keyword      = {Keywords: retirement savings,financial independence,financial literacy,safe withdrawal rate},
  language     = {eng},
  note         = {Student Paper},
  title        = {Catch the dream of financial independence - A study about how you can impact your retirement saving and reach your future financial goal},
  year         = {2018},
}