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The Effect of Uncertain Labor Income and Social Security on Life-cycle Portfolios
Maurer, Raimond - 2010
with low income uncertainty; for the high income risk worker, equity exposure rises until retirement. We also evaluate how … differences in social security benefits can influence retirement risk management …
Persistent link: https://www.econbiz.de/10012462970
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Extending Life Cycle Models of Optimal Portfolio Choice : Integrating Flexible Work, Endogenous Retirement, and Investment Decisions with Lifetime Payouts
Chai, Jingjing - 2009
This paper derives optimal life cycle portfolio asset allocations as well as annuity purchases trajectories for a consumer who can select her hours of work and also her retirement age. Using a realistically-calibrated model with stochastic mortality and uncertain labor income, we extend the...
Persistent link: https://www.econbiz.de/10012463570
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Time is Money : Life Cycle Rational Inertia and Delegation of Investment Management
Kim, Hugh Hoikwang - 2013
This paper incorporates two empirically-grounded insights into a dynamic life cycle portfolio choice model: the fact that investors forego the opportunity to accumulate job-specific skills when they spend time managing their own money, and the observation that efficiency in financial decision...
Persistent link: https://www.econbiz.de/10012458931
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Optimal Life Cycle Portfolio Choice with Variable Annuities Offering Liquidity and Investment Downside Protection
Horneff, Vanya - 2013
longevity risk, and partially-refundable premiums. Welfare rises since policyholders exercise the product's flexibility by …
Persistent link: https://www.econbiz.de/10012459457
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Lifecycle Impacts of the Financial and Economic Crisis on Household Optimal Consumption, Portfolio Choice, and Labor Supply
Chai, Jingjing - 2011
The direct financial impact of the financial crisis has been to deal a heavy blow to investment-based pensions; many workers lost a substantial portion of their retirement saving. The financial sector implosion produced an economic crisis for the rest of the economy via high unemployment and...
Persistent link: https://www.econbiz.de/10012461524
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How Will Persistent Low Expected Returns Shape Household Economic Behavior?
Horneff, Vanya - 2018
Many believe that global capital markets will generate lower returns in the future versus the past. We examine how persistently lower real returns will reshape work, retirement, saving, and investment behavior of older persons using a calibrated dynamic life cycle model. In a low return regime,...
Persistent link: https://www.econbiz.de/10012480785
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Optimizing the Retirement Portfolio : Asset Allocation, Annuitization, and Risk Aversion
Horneff, Wolfram J. - 2006
withdrawal strategy, assuming risk aversion, stochastic capital markets, and uncertain lifetimes. The resulting portfolio … retirees across a wide range of risk preferences, supporting financial planning advisors who often recommend this rule. We then … death." As risk aversion rises, annuities first crowd out bonds in retiree portfolios; at higher risk aversion still …
Persistent link: https://www.econbiz.de/10012466273
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Fixed and Variable Longevity Annuities in Defined Contribution Plans : Optimal Retirement Portfolios Taking Social Security into Account
Horneff, Vanya; Maurer, Raimond; Mitchell, Olivia S. - National Bureau of Economic Research - 2023
This paper investigates retirees' optimal purchases of fixed and variable longevity income annuities using their defined contribution (DC) plan assets and given their expected Social Security benefits. As an alternative, we also evaluate using plan assets to boost Social Security benefits...
Persistent link: https://www.econbiz.de/10013537747