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https://hdl.handle.net/10419/59248
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DC Field | Value | Language |
---|---|---|
dc.contributor.author | Sun, Wei | en |
dc.contributor.author | Triest, Robert K. | en |
dc.contributor.author | Webb, Anthony | en |
dc.date.accessioned | 2012-06-20T16:10:07Z | - |
dc.date.available | 2012-06-20T16:10:07Z | - |
dc.date.issued | 2007 | - |
dc.identifier.uri | http://hdl.handle.net/10419/59248 | - |
dc.description.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. | en |
dc.language.iso | eng | en |
dc.publisher | |aFederal Reserve Bank of Boston |cBoston, MA | en |
dc.relation.ispartofseries | |aPublic Policy Discussion Papers |x07-2 | en |
dc.subject.jel | D14 | en |
dc.subject.jel | D91 | en |
dc.subject.jel | G11 | en |
dc.subject.jel | J14 | en |
dc.subject.ddc | 330 | en |
dc.title | Optimal retirement asset decumulation strategies: The impact of housing wealth | - |
dc.type | Working Paper | en |
dc.identifier.ppn | 568696727 | en |
dc.rights | http://www.econstor.eu/dspace/Nutzungsbedingungen | en |
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