Horneff, Wolfram; Maurer, Raimond; Mitchell, Olivia; … - Institute for Social Research (ISR), University of Michigan - 2006
Retirees must draw down their accumulated assets in an orderly fashion so as not to exhaust their funds too soon. We derive the optimal retirement portfolio from a menu that includes payout annuities as well as an investment allocation and a withdrawal strategy, assuming risk aversion,...