Growing Old Gracefully

The aim of this work is to investigate an
individual''s optimal life cycle behaviour, with
particular reference to financial decisions made
over time. How should one consume, save, invest,
insure and annuitise over one''s life? In chapter 3
we implement a model of lifetime personal financial
planning. By simulating this theoretical model of
lifetime personal financial planning we are able to
quantitatively assess popular financial advice. We
examine age-phasing as well as a traditional rule of
thumb for life insurance purchase. Our modelling
also sheds light on the reasons for the thinness of
voluntary life annuity markets worldwide. Chapter 4
extends the model, examining the implications for
individual optimal behaviour if either borrowing is
constrained, no annuity market exists, or mean
reversion and persistence are present in equity
returns. Chapter 5 considers the important question
of determining optimal consumption, investment and
life insurance/annuity demand over the life cycle in
an environment where labour income is no longer
deterministic but stochastic.

Autorentext
Thomas (Sachi) Purcal is a lecturer in Actuarial Studies at the University of New South Wales in Sydney, Australia. Previously he worked in actuarial consulting in Canada and for a life insurer in Australia. Dr.Purcal has degrees from Macquarie University, the University of British Columbia and the University of New South Wales.

Klappentext
The aim of this work is to investigate an individual's optimal life cycle behaviour, with particular reference to financial decisions made over time. How should one consume, save, invest, insure and annuitise over one's life? In chapter 3 we implement a model of lifetime personal financial planning. By simulating this theoretical model of lifetime personal financial planning we are able to quantitatively assess popular financial advice. We examine age-phasing as well as a traditional rule of thumb for life insurance purchase. Our modelling also sheds light on the reasons for the thinness of voluntary life annuity markets worldwide. Chapter 4 extends the model, examining the implications for individual optimal behaviour if either borrowing is constrained, no annuity market exists, or mean reversion and persistence are present in equity returns. Chapter 5 considers the important question of determining optimal consumption, investment and life insurance/annuity demand over the life cycle in an environment where labour income is no longer deterministic but stochastic.