THE SUITABLE INVESTMENT FOR RETIREMENT AGE

  • เจี่ยไฮ่ หวัง
  • สมพร ปั่นโภชา
  • นลินี เวชวิริยะกุล
Keywords: SET50 Index, retirement age, Withdrawal Rate

Abstract

This research studies about the suitable investment for retirement age by considering  4  types of  assets to be invested such as SET50 index, Crude oil, Bond and Cash. Analyzing by Monte Carlo Model for selecting the proportion of investment of 35 patterns with appropriate withdrawal rate. The failure rate that investments can   be accepted to cover the retirement age.

The results conclude that investors who expect to live 10 years after retirement do not need to allocate too many asset classes to reach their goal because they can bring amount of cash to deposit in bank or invest in bond. Thus they can reach the goal when retirement under the condition that the withdrawal rate do not excess 10%. For investors who expect to be live after retirement more than 20 years. These pattern of investments mostly usually fail.  However there are some pattern that have withdrawal rate 3%- 5% and the failure rate be zero.

Published
2017-09-17
Section
Engineering and Technology Articles

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