Donnelly, Catherine; Gerrard, Russell; Guillén, Montserrat - Institut de Recerca en Economia Aplicada (IREA), … - 2015
wealth value at retirement. The investor is an expected power utility-maximizer. The target wealth value is the maximum … wealth that the investor can have at retirement. By constraining the investor to have no more than the target wealth at … retirement, we find that the lower quantiles of the terminal wealth distribution increase, so the risk of poor financial outcomes …