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Record W3127252613 · doi:10.1142/s0219024921500072

TWO STAGE DECUMULATION STRATEGIES FOR DC PLAN INVESTORS

2021· article· en· W3127252613 on OpenAlexafffund
Peter Forsyth

Bibliographic record

VenueInternational Journal of Theoretical and Applied Finance · 2021
Typearticle
Languageen
FieldBusiness, Management and Accounting
TopicFinancial Literacy, Pension, Retirement Analysis
Canadian institutionsUniversity of Waterloo
FundersNatural Sciences and Engineering Research Council of Canada
KeywordsEconomicsAnnuityActuarial scienceStock (firearms)Asset allocationEconometricsStochastic controlLife annuityBondCash flowTime horizonTarget date fundUpper and lower boundsRisk measurePurchasingPortfolioMathematicsFinancial economicsFinancePensionMathematical optimizationOperations managementOptimal control

Abstract

fetched live from OpenAlex

Optimal stochastic control methods are used to examine decumulation strategies for a defined contribution (DC) plan retiree. An initial investment horizon of 15 years is considered, since the retiree will attain this age with high probability. The objective function reward measure is the expected sum of the withdrawals. The objective function tail risk measure is the expected linear shortfall with respect to a desired lower bound for wealth at 15 years. The lower bound wealth level is the amount which is required to fund a lifelong annuity 15 years after retirement, which generates the required minimum cash flows. This ameliorates longevity risk. The controls are the withdrawal amount each year, and the asset allocation strategy. Maximum and minimum withdrawal amounts are specified. Specifying a short initial decumulation horizon, results in the optimal strategy achieving: (i) median withdrawals at the maximum rate within 2–3 years of retirement (ii) terminal wealth larger than the desired lower bound at 15 years, with greater than [Formula: see text] probability and (iii) median terminal wealth at 15 years considerably larger than the desired lower bound. The controls are computed using a parametric model of historical stock and bond returns, and then tested in bootstrap resampled simulations using historical data. At the 15 year investment horizon, the retiree has the option of (i) continuing to self-manage the decumulation policy or (ii) purchasing an annuity.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.000
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: Theoretical or conceptual
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.077
Threshold uncertainty score0.400

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0000.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.000
Science and technology studies0.0000.000
Scholarly communication0.0000.000
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.015
GPT teacher head0.262
Teacher spread0.247 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designTheoretical or conceptual
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations3
Published2021
Admission routes2
Has abstractyes

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