An Investment Strategy for the Unluckiest Investor’s Grandchildren to Inherit

Authors

  • Harvey W. Rubin Louisiana State University in Shreveport
  • Carlos G. Spaht, II Louisiana State University in Shreveport

DOI:

https://doi.org/10.33423/jabe.v22i9.3667

Keywords:

Business, Economics, Finance, financial independence, retirement, retirement planning, stocks, investing, dividends

Abstract

Using the “S&P 500”, an investor makes a onetime selection of stocks. Each quarter from 1993 to 2007, he continues investing a fixed amount and reinvesting the dividends in each of the stocks. Unfortunately, all of his transactions are made at the stocks’ highest prices. At the end of 2007, he stops investing additional funds, but continues reinvesting the dividends. This continues until his death at the end of 2019, and his portfolio is left as his grandchildren’s inheritance. They have decided to use it for college tuition. What is the portfolio’s final worth? Will it be sufficient?

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Published

2020-12-03

How to Cite

Rubin, H. W., & Spaht, II, C. G. (2020). An Investment Strategy for the Unluckiest Investor’s Grandchildren to Inherit. Journal of Applied Business and Economics, 22(9). https://doi.org/10.33423/jabe.v22i9.3667

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Section

Articles