000			02029cam a22003377 4500
001			w17025
003			NBER
005			20211020110906.0
006			m o d
007			cr cnu||||||||
008			210910s2011 mau fo 000 0 eng d
100	1		_aLi, Jialun.
245	1	0	_aOptimal Portfolio Choice with Wage-Indexed Social Security / _cJialun Li, Kent Smetters.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c2011.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w17025
500			_aMay 2011.
520	3		_aThis paper re-examines the classic question of how a household should optimally allocate its portfolio between risky stocks and risk-free bonds over its lifecycle. We show that allowing for the wage indexation of social security benefits fundamentally alters the optimal decisions. Moreover, the optimal allocation is close to observed empirical behavior. Households, therefore, do not appear to be making large "mistakes," as sometimes believed. In fact, traditional financial planning advice, as embedded in "target date" funds - whose enormous recent growth has been encouraged by new government policy - often leads to even relatively larger "mistakes" and welfare losses.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aG11 - Portfolio Choice • Investment Decisions _2Journal of Economic Literature class.
690		7	_aH0 - General _2Journal of Economic Literature class.
700	1		_aSmetters, Kent.
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w17025.
856	4	0	_uhttps://www.nber.org/papers/w17025
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w17025
942			_2ddc _cW-PAPER
999			_c331098 _d289660