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This paper developed a wealth allocation framework for longevity risk protection under stochastic lifetime. By combining the dynamics of wealth evolution and health evolution in stochastic multi-period discrete-time models, an optimization problem was formulated with the objective of maximizing...
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Risk related to long-term care (LTC) is high for the elderly. Planning for LTC is now regarded as the [`]third leg' of retirement planning. In this paper, planning for LTC is integrated with saving and investment decisions for an integrated approach to retirement planning. Optimal LTC insurance...
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