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

• Record Nr.: UNINA9910968788003321
• Pubbl/distr/stampa: New York, : Nova Science Publishers, c2010
• ISBN: 1-61324-606-4
• Edizione: [1st ed.]
• Descrizione fisica: 1 online resource (138 p.)
• Collana: Retirement issues, plans and lifestyles
• Altri autori (Persone): WaverlyTerrance G
• Disciplina: 332.024/014
• Soggetti: Cost and standard of living - United States - Econometric models; Retirement income - United States - Econometric models; Retirees - United States - Economic conditions; Wealth - United States - Econometric models
• Lingua di pubblicazione: Inglese
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Note generali: Description based upon print version of record.
• Nota di bibliografia: Includes bibliographical references and index.
• Nota di contenuto: 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 -- End Notes -- 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 -- References -- End Notes -- INDEX -- FINANCIAL ASSET MANAGEMENT AND WEALTH IN RETIREMENT.; FINANCIAL ASSET MANAGEMENT AND WEALTH IN RETIREMENT -- 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 -- End Notes -- 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 -- References -- End Notes -- INDEX -- Blank Page.
• Sommario/riassunto: 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.