There is no magic that insurance companies can do to enhance long term returns on a bond portfolio, and given the costs involved most investors would be far better served to invest in a short-term, high quality bond index fund.
With this approach, because standard, long term, market investment returns are so much higher than the implicit returns paid by completely noninvested, pay-as-you-go Social Security, all workers who exercise the personal accounts would receive more in benefits through the personal accounts earning standard long term returns than the Social Security benefits they replace.
Because the long term returns from real savings and investment are so much higher, saving and investing over a lifetime the 2.9% Medicare payroll tax in the personal accounts would produce an income stream in retirement roughly three times as large as the uninvested, tax and spend, purely redistributive, pay-as-you-go Medicare payroll tax today.
The real world systems offering personal accounts as an alternative to Social Security all suffered some losses in the financial crisis, but none of them failed and most of the losses have since been recovered, with workers continuing to enjoy far greater long term returns and benefits from the fully funded and invested personal accounts.
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Investors have been so conditioned to focus on maximizing upside, they do not fully appreciate the cost of near-term losses in hindering long-term returns.
The pensions industry must take the long view by making investments that are volatile in the short term, but likely to yield far higher long-term returns.
It may be technically correct based on long-term returns, but not on short-term emotion.
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For investors, exposure to the healthcare asset class could be a major differentiator of long-term returns.
This innovation provides better choices for the entrepreneur and should result in better long-term returns.
Bonds typically generate smaller long-term returns than stocks, but with less chance of short-term losses.
In other words, it's the least risky stocks that offer the highest long-term returns.
Long-term returns bode well for investors who are willing to ride out the current volatility and low yields.
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That leaves behind great bargains for disciplined investors to pick up, allowing them to produce excellent long-term returns.
For others, commission-free ETFs may lead to increased tinkering with asset allocations, to the detriment of long-term returns.
Investors in small-cap stocks have traditionally hoped to earn higher long-term returns at the price of greater short-term volatility.
Only suits targeting illegal insider trading, and to a lesser extent, accounting fraud were associated with subsequent higher long-term returns.
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In investing I would argue that the best long-term returns come from three great ingredients: value, small capitalization and dividends.
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"Those who argue that long-term returns will be better than 3.5% because yields will go up might be right, " Arnott says.
Now that the technology bubble has burst, Mr Buffett's strategy of conservative bricks-and-mortars investments has turned out to deliver better long-term returns.
In truth, there have been no fundamental changes over the past decade: Investors still want attractive long-term returns relevant to their level of risk.
They are not stimulating the provision of credit to the businesses perceived to be intrinsically riskier, but whose prospects for long-term returns are also best.
French to determine the long-term returns for value and growth stocks.
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That should translate into long-term returns that exceed the 9% Koch could get by simply liquidating his company and investing the proceeds in an index fund.
The first is that students and their families still lack sufficient data to estimate long-term returns for specific college degrees the way investors do with stocks and bonds.
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Unlike many rivals, which often focus on short-term results and oil-price movements, Exxon invests in or walks away from projects based on long-term returns on capital assuming moderate oil prices.
For this gamble to pay the sorts of long-term returns the Bush Administration hopes for, however, it must be rooted in hard-headed realism, based on transparency and practical measures.
Although such tax dodges have an unsavory reputation, Vicki Schultz says she has vetted this one along with the specialized fund offerings and can vouch for long-term returns after fees.
So Mr. Johnson, Ms. Jones, and Ms. Harding to do what they felt necessary to ensure that they would be on top of their sport in order to maximize long-term returns.
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For example, investors seem to hate stocks that are priced relatively low compared with book value, even though those stocks consistently have had higher long-term returns than flashy, high price-to-book stocks.
It knows that average, long-term returns are very small.
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