@techreport{Sun2007Optimal,
abstract = {We estimate the relationship between the returns on housing, stocks, and bonds, and simulate a variety of decumulation strategies incorporating reverse mortgages. We show that homeowner's reversionary interest, the amount that can be borrowed through a reverse mortgage, is a surprisingly risky asset. Under our baseline assumptions we find that the average household would be as much as 24 percent better off taking a reverse mortgage as a lifetime income relative to what appears to be the most common strategy: delaying tapping housing wealth until financial wealth is exhausted and then taking a line of credit. In addition, the results show that housing wealth displaces bonds in optimal portfolios, making the low rate of participation in the stock market even more of a puzzle.},
address = {Boston, Mass.},
author = {Wei Sun and Robert K. Triest and Anthony Webb},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {D14; D91; G11; J14; 330},
language = {eng},
number = {07,2},
publisher = {Federal Reserve Bank of Boston},
title = {Optimal retirement asset decumulation strategies: The impact of housing wealth},
type = {Public policy Discussion Papers, Federal Reserve Bank of Boston},
url = {http://hdl.handle.net/10419/59248},
year = {2007}
}
