Tag: asset decumulation
The brief’s key findings are: Managing a nest egg in retirement is hard. People don’t know how long they will live and what asset returns to expect. “Rules of thumb,” such as spending either asset income only or a fixed percent of the capital each year, have significant limitations the capital each year, have significant…
Abstract A considerable literature examines the optimal decumulation of financial wealth in retirement. We extend this line of research to incorporate housing, which comprises the majority of most households’ non-pension wealth. We use VARs to estimate the relationship between the returns on housing, stocks, and bonds, and use simulation techniques to investigate a variety of…
