Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5076399 | Insurance: Mathematics and Economics | 2015 | 9 Pages |
Abstract
By constraining the investor to have no more than the target wealth at retirement, we find that the lower quantiles of the terminal wealth distribution increase, so the risk of poor financial outcomes is reduced. The drawback of the optimal strategy is that the possibility of gains above the target wealth is eliminated.
Related Topics
Physical Sciences and Engineering
Mathematics
Statistics and Probability
Authors
Catherine Donnelly, Russell Gerrard, Montserrat Guillén, Jens Perch Nielsen,