Bodie, Zvi

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  • Publication
    Retirement Investing: A New Approach
    (2001-02-01) Bodie, Zvi
    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: 1. It uses inflation-protected bonds to hedge a minimum standard of living after retirement; 2. It takes account of a person’s willingness to postpone retirement, and 3. It uses option “ladders” to lever growth in retirement income.