Lifetime consumption and investment with housing, deferred annuities and home equity release

We develop a life-cycle optimal investment and consumption model with deferred annuities, housing, mortgages home equity release. The investor can hold cash, bonds, stocks, annuities invest in through renting, purchasing, or mix of both, access to variable-rate mortgages. In retirement, the his housing form release called reversion contract. Transaction costs, taxes management fees are explicitly included. investor's risk preferences represented by standard power utility derived from non-housing consumption, both before after bequest. use multi-stage stochastic programming solve optimization problem numerically. Our results show that may be higher retirement when available than they absent. bequest motive has little effect on small reduction overall annuitization.