Winners and Losers: 401(k) Trading and Portfolio Performance
dc.contributor.author | Yamaguchi, Takeshi | |
dc.contributor.author | Mitchell, Olivia S. | |
dc.contributor.author | Mottola, Gary R. | |
dc.contributor.author | Utkus, Stephen P. | |
dc.date.accessioned | 2007-08-14T13:40:41Z | |
dc.date.available | 2007-08-14T13:40:41Z | |
dc.date.issued | 2007-06 | |
dc.identifier.uri | https://hdl.handle.net/2027.42/55453 | |
dc.description.abstract | Few previous studies have explored how individuals manage their defined contribution (DC) pension plan assets, even though such plans constitute an increasingly important component of retirement wealth. Using a unique new dataset on over one million active 401(k) plan participants in a wide range of plans, we assess the impact of trading on investment performance in DC plans. We find that, in aggregate, the risk-adjusted returns of traders are no different than those of nontraders. Yet certain types of trading such as periodic rebalancing are beneficial, while high-turnover trading is costly. Interestingly, those who hold only balanced or lifecycle funds, whom we call passive rebalancers, earn the highest risk-adjusted returns. These findings should interest fiduciaries responsible for designing DC pensions and regulators of the retirement saving environment. | en_US |
dc.description.sponsorship | Social Security Administration | en_US |
dc.format.extent | 202743 bytes | |
dc.format.mimetype | application/pdf | |
dc.language.iso | en_US | en_US |
dc.publisher | Michigan Retirement Research Center, University of Michigan, P.O. Box 1248, Ann Arbor, MI 48104 | en_US |
dc.relation.ispartofseries | WP 2007-154 | en_US |
dc.title | Winners and Losers: 401(k) Trading and Portfolio Performance | en_US |
dc.type | Working Paper | en_US |
dc.subject.hlbsecondlevel | Population and Demography | |
dc.subject.hlbtoplevel | Social Sciences | |
dc.contributor.affiliationother | The Wharton School | en_US |
dc.contributor.affiliationother | Vanguard Center for Retirement Research | en_US |
dc.contributor.affiliationumcampus | Ann Arbor | en_US |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/55453/1/wp154.pdf | en_US |
dc.owningcollname | Retirement and Disability Research Center, Michigan (MRDRC) |
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