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(Ebook) The Future of Life-Cycle Saving and Investing by Zvi Bodie ISBN 9780943205960, 0943205964

  • SKU: EBN-1937548
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Authors:Zvi Bodie
Pages:206 pages.
Year:2007
Publisher:Research Foundation of CFA Institute
Language:english
File Size:1.65 MB
Format:pdf
ISBNS:9780943205960, 0943205964
Categories: Ebooks

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(Ebook) The Future of Life-Cycle Saving and Investing by Zvi Bodie ISBN 9780943205960, 0943205964

In determining asset allocation, individuals must consider more than the risk return trade-off of financial assets. They must take into account human capital and mortality risk in the earlier life-cycle stages and longevity risk in the later life-cycle stages. The authors show how to integrate these factors into individual investors asset allocations through a systematic joint analysis of the life insurance a family needs to protect human capital and how to allocate the family's financial capital. The proposed life-cycle model then addresses the transition from the accumulation to the saving phases in particular, the role, if any, of immediate payout annuities.
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