Boston University School of Management Working Paper No. 2001-03
12 Pages Posted: 19 Feb 2001
Date Written: February 2001
This paper proposes a new approach to investing for retirement that takes advantage of recent market innovations and advances in finance theory to improve the risk/reward opportunities available to individual investors before and after retirement. The approach introduces three new elements:
- It uses inflation-protected bonds to hedge a minimum standard of living after retirement.
- It takes account of a person's willingness to postpone retirement.
- It uses option "ladders" to lever growth in retirement income.
Keywords: Inflation-protected bonds, flexible retirement, option ladders
JEL Classification: D91, G11
Suggested Citation: Suggested Citation
Bodie, Zvi, Retirement Investing: A New Approach (February 2001). Boston University School of Management Working Paper No. 2001-03. Available at SSRN: https://ssrn.com/abstract=260628 or http://dx.doi.org/10.2139/ssrn.260628
By Zvi Bodie