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Optimal Portfolio Choice with Wage-Indexed Social Security
Li, Jialun - 2011
stocks and risk-free bonds over its lifecycle. We show that allowing for the wage indexation of social security benefits …
Persistent link: https://www.econbiz.de/10013125573
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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/10013123696
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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/10013071793
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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 - 2010
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/10013152495
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Optimal Life-Cycle Investing with Flexible Labor Supply : A Welfare Analysis of Life-Cycle Funds
Gomes, Francisco - 2010
-cycle (or target date) funds. We find that life-cycle funds designed to match the risk tolerance and investment horizon of … investors have small welfare costs. All other choices, including life-cycle funds which do not match investors' risk tolerance …
Persistent link: https://www.econbiz.de/10012759350
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Borrowing Costs and the Demand for Equity Over the Life Cycle
Davis, Steven J. - 2010
. We show that even a small wedge between borrowing costs and the risk-free return dramatically shrinks the demand for … consumption growth and equity returns is low at all ages, and that risk aversion estimates based on the standard excess return … borrowing costs and risk aversion, and the standard deviation of marginal utility growth is an order of magnitude smaller than …
Persistent link: https://www.econbiz.de/10012762900
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Asset Holdings and the Life Cycle
King, Mervyn - 2010
Empirical studies of the life cycle savings model have tended to rej ect the hypothesis of a quot;hump-shapedquot; pattern for the wealth-age profile. In this paper we show, using new data on net worth for 12,734 families, that there is evidence that wealth declines after retirement provided...
Persistent link: https://www.econbiz.de/10012763136
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Investing Retirement Wealth : a Life-Cycle Model
Campbell, John Y. - 2010
that realistic heterogeneity of risk aversion and labor income risk can strongly affect optimal portfolio choice over the …
Persistent link: https://www.econbiz.de/10012763806
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Labor Supply Flexibility and Portfolio Choice in a Life-Cycle Model
Bodie, Zvi; Merton, Robert C.; Samuelson, William F. - 2021
This paper examines the effect of the labor-leisure choice on portfolio and consumption decisions over an individual's life cycle. The model incorporates the fact that individuals may have considerable flexibility in varying their work effort (including their choice of when to retire). Given...
Persistent link: https://www.econbiz.de/10013232015
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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/10013148650