Catch the dream of financial independence - A study about how you can impact your retirement saving and reach your future financial goal
(2018) NEKN02 20181Department 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:
http://lup.lub.lu.se/student-papers/record/8949108
- author
- Hemmesåker, Emilia LU and Nelfelt, Victor LU
- supervisor
- organization
- course
- NEKN02 20181
- year
- 2018
- 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}}, 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}}, }