Thoughts on Managing Endowment Goals, Spending, and Investment Policy
Published in Investments & Wealth Monitor, January/February 2008

Consultants face many standard investment problems, including structuring corporate pension plans, investing for an individual client’s retirement, and advising endowment funds.

Pension plans and individual retirement savings fund specific future liabilities over finite times: the lifetimes of the beneficiaries. The investment challenge is to fund these liabilities and appropriately trade off cost against risk.

Endowment funds are different. They are set up to exist forever. The goal is to use those assets to best benefit the recipient for the indefinite future.

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