Financial asset management and wealth in retirement / Terrance G. Waverly, editor.

Format:

Book

Contributor:

Waverly, Terrance G.

Series:

Retirement issues, plans and lifestyles.

Retirement issues, plans and lifestyles

Language:

English

Subjects (All):

Cost and standard of living--United States--Econometric models.

Cost and standard of living.

Retirement income--United States--Econometric models.

Retirement income.

Retirees--United States--Economic conditions.

Retirees.

Wealth--United States--Econometric models.

Wealth.

Physical Description:

1 online resource (138 p.)

Edition:

1st ed.

Place of Publication:

New York : Nova Science Publishers, c2010.

Language Note:

English

Summary:

After many years of accumulating assets to spend in retirement, the members of the 'baby boom' generation who are beginning to retire must decide how to convert these assets into a steady stream of income. This book looks at these 78 million members.

Contents:

Intro

CONTENTS

PREFACE

Chapter 1 THE TRAJECTORY OF WEALTH IN RETIREMENT

Abstract

1. Introduction

2. Data

2.1. Methods

2.2. Characteristics of the Sample

2.3. The Composition and Level of Comprehensive Wealth in the HRS

3. A Measure of Annualized Wealth for Retirees

3.1. Definition of Annualized Wealth

3.2. Annualized Wealth and the Life Cycle Model

3.3. Annualized Wealth and Joint Life Annuities

3.4. Discussion of Annualized Wealth

3.5. Annualized Wealth in the HRS

4. Nonparametric Age Profiles of Comprehensive Wealth in the HRS

4.1. Methodology

4.2. Results

5. Regression-based Age Profiles of Comprehensive Wealth in the HRS

5.1. Methodology

5.2. Results

5.3. The Effect of Capital Gains on the Estimated Age Profiles

6. Predicted Age Profiles for Annualized Comprehensive Wealth from Life Cycle Model Simulations

6.1. Description of the Models We Consider

6.2. Comparison of Age Profiles from the HRS and the Model Simulations

7. Conclusion

References

Appendix 1: Present Value Calculations for the Annuity-Like Components of Comprehensive Wealth

Defined Benefit Pension Benefits

Social Security Benefits

Annuities and Welfare Benefits

Appendix 2: Detailed Description of the Life Cycle Model Simulations Reported in the Paper

Simulation Results

Baseline Life Cycle Model

Effect of Uncertain Longevity

Effect of a Bequest Function

Effect of Differential Mortality by Wealth

Effect of Random Medical Expenses

End Notes

Chapter 2 CONVERTING RETIREMENT SAVINGS INTO INCOME: ANNUITIES AND PERIODIC WITHDRAWALS

Summary

Introduction

The Nature of Risk in Retirement

Longevity Risk

Inflation Risk

Investment Risk

Unexpected Events

Annuities as a Source of Retirement Income

The Current Market for Annuities

Group Annuities.

Individual Annuities

Timing of Payments

Rates of Return

Inflation Protection Options

Tax Treatment of Annuities

Taxation of Income from a Fixed Annuity

Taxation of Income from a Variable Annuity

Tax Exclusion for Long-Term Care Insurance

Consumer Protections and the Regulatory Environment

State Regulation of Annuities

Federal Regulation of Annuities

Why Is Demand for Individual Annuities So Low?

Complexity and Lack of Transparency in Annuity Expenses

Lack of Flexibility in Dealing with Unexpected Expenses

Retirement Account Withdrawal Strategies

How Long Will a Retirement Account Last with Fixed Annual Withdrawals?

Initial Rate of Withdrawal

Investment Portfolio

Probability of Assets Lasting for at Least a Specific Number of Years

Portfolio of 65% Stocks and 35% Bonds

Portfolio of 35% Stocks and 65% Bonds

Estimates Incorporating Life Expectancy

Estimates of Variable Annual Withdrawals

Summary of Withdrawal Strategies: Balancing Risks

Appendix A. What is "Monte Carlo" Analysis?

Appendix B. United States Life Tables, 2004

Author Contact Information

Chapter 3 WILL THE DEMAND FOR ASSETS FALL WHEN THE BABY BOOMERS RETIRE?

Summary and Introduction

What Does Simple Theory Predict about Asset Demand?

What Does the Evidence Tell Us?

Why Are Baby Boomers Unlikely to Draw Down Assets Rapidly in Retirement?

Saving for Unexpected Events

Saving for Bequests

Unequal Distribution of Assets

Effects of the Financial Turmoil

Will Baby Boomers Alter the Mix of Assets in Their Portfolios?

Could Other Factors Sustain the Demand for Assets?

Demand from Abroad

Demand Among Immigrants

Effect on Asset Prices

INDEX

FINANCIAL ASSET MANAGEMENT AND WEALTH IN RETIREMENT.

FINANCIAL ASSET MANAGEMENT AND WEALTH IN RETIREMENT

Annuities as a Source of Retirement Income.

The Current Market for Annuities

Group Annuities

Individual Annuities

Blank Page.

Notes:

Description based upon print version of record.

Includes bibliographical references and index.

Description based on print version record and CIP data provided by publisher; resource not viewed.

ISBN:

1-61324-606-4

OCLC:

744635246