Article ID Journal Published Year Pages File Type
5069659 Finance Research Letters 2016 5 Pages PDF
Abstract

We study optimal consumption/investment of a retiree who has luxury bequest motives and faces the nonnegative bequest constraint. His lifetime is uncertain but actuarially fair life insurance-annuity policies are available. We obtain a closed form solution by using a dynamic programming method, and investigate the effects of lifetime uncertainty and the presence of life insurance-annuity on the consumption/investment policies.

Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Effect of lifetime uncertainty on consumption/investment with luxury bequest motives
Authors
, , ,