The Floor-Leverage Rule for Retirement

  1. Poor
  2. Satisfactory
  3. Good
  4. Very Good
  5. Excellent

Average: 4.2 (6 ratings)

Financial Analysts Journal
September/October 2013 | Vol. 69 | No. 5 | 16 pages
Source: CFA Institute
Jason S. Scott John G. Watson

US$0.00 Member | US$0.00 Candidate | US$15.00 Nonmember



The floor-leverage rule is a spending and investment strategy designed for retirees who can tolerate investment risk but insist on sustainable spending. The rule calls for purchasing a spending guarantee with 85% of wealth and investing the remaining 15% in equities with 3× leverage. Surprisingly, this leverage is a tool for managing risk. The authors compare the rule with some popular strategies, illustrate it for a variety of retiree preferences, and evaluate its historical performance.

View more information

Credits · About the CE Program
1 CE (including 0 SER) Manage CE Credits

People who viewed this page also viewed:

Webcast / Podcast
What Not to Do—Tales from Manager Searches Gone Wrong
GIPS Standards Conferences: 2008 GIPS Standards Annual Conference
Exotic Beta Revisited
CFA Institute: Financial Analysts Journal
The Crash Risks of Style Investing: Can They Be Internationally Diversified?
CFA Institute: Financial Analysts Journal

Loading ...