Investing Retirement Wealth: A Life-Cycle Model
نویسندگان
چکیده
منابع مشابه
Portfolio Theory, Life-Cycle Investing, and Retirement Income
discussion recently about life-cycle funds and their role in providing a secure retirement income for older Americans. These funds, which gradually shift account assets from broad-based stock funds to bond funds as a participant ages, are becoming an important vehicle for retirement savings. This policy brief explores the economic rationale behind the life-cycle approach and the advantages and ...
متن کاملRetirement and Consumption in a Life Cycle Model
Retirement and Consumption in a Life Cycle Model Consumption expenditure declines sharply at the time of retirement for many households, but the majority maintain a smooth consumption path. A simple life cycle model with uncertainty about the time of retirement can account for this pattern. A richer version of the model is calibrated to data from the Health and Retirement Study. The median chan...
متن کاملLife-Cycle Investing and Leverage: Buying Stock on Margin Can Reduce Retirement Risk
By employing leverage to gain more exposure to stocks when young, individuals can achieve better diversification across time. Using stock data going back to 1871, we show that buying stock on margin when young combined with more conservative investments when older stochastically dominates standard investment strategies—both traditional life-cycle investments and 100%-stock investments. The expe...
متن کاملRetirement and wealth.
The decision to retire is related to the decision to save and to a number of other decisions, including decisions of when to claim Social Security benefits and what share of assets to hold as pensions, Social Security, and in other forms. This article explores the relationships among these various decisions and then explains why it is important to take them into account when attempting to under...
متن کاملAnalyzing health risks, early retirement and saving behavior with a structural life-cycle model
This paper proposes a structural life-cycle model to analyze the relationship between health risks, early retirement and saving behavior for employees in Germany. I rely on the framework of a dynamic programming discrete choice model with a discretized saving decision. The model accounts for both forward looking behavior and unobserved heterogeneity which is specified seminonparametrically. Hea...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2000
ISSN: 1556-5068
DOI: 10.2139/ssrn.236444