The Asset Location (AL) decision determines which of the assets owned should be held in which account-type (tax-deferred, tax-exempt or taxable) in order to maximize the tax-reduction benefits of those accounts and to maximize ending wealth. This paper argues against AL practices that a) phrase...

Many college and university 403(b) plans restrict the menu of investment choices to funds offered by TIAA-CREF, the current manager of over half of all 403(b) contributions. Further, in the face of Internal Revenue Code changes that will take effect in 2006 and will make 403(b) plan ERISA...

This study examined how Australia's tax and transfer system, especially in relation to the Age Pension, impacts on household retirement choices. As the population ages, fiscal challenges created when many individuals retire from working and paying tax to drawing government funded benefits and...

"Breaking Bad for Boomers," analyzes the pitfalls of "pie-chart" plans for retirement asset allocation, identifies new benchmarks for 401(k) plan participants, and offers a new solution for asset allocation marketed by Compass Investors under the name HORIZON, which features back-tested...

Frequent shifting of household portfolio composition may erode wealth due to poor market timing and transaction costs. If household preferences are stable, the optimal wealth maximizing strategy is periodically rebalancing to maintain a relatively constant ratio of investment assets to wealth...

Frequent shifting of household portfolio composition may erode wealth due to poor market timing and transaction costs. If household preferences are stable, the optimal wealth maximizing strategy is periodically rebalancing to maintain a relatively constant ratio or investment assets to wealth...

The savings rate and performance of an investment portfolio during the savings period are crucial in determining retirement income. Regulation 28 limitations impose risk management in asset allocation, however the long-term impact of the poor performance of domestic equities reduces...

We estimate the relationship between the returns on housing, stocks, and bonds, and simulate a variety of decumulation strategies incorporating reverse mortgages. We show that homeowner’s reversionary interest, the amount that can be borrowed through a reverse mortgage, is a surprisingly risky...

This paper studies a household's optimal demand for a reverse mortgage. These contracts allow homeowners to tap their home equity to finance consumption needs. In stylized frameworks, we show that the decision to enter a reverse mortgage is mainly driven by the dierential between the aggregate...

The changing social, financial and regulatory frameworks, such as an increasingly aging society, the current low interest rate environment, as well as the implementation of Solvency II, lead to the search for new product forms for private pension provision. In order to address the various...