PT  - JOURNAL ARTICLE
AU  - Blanchett David
ED  - Scott, Cathy
TI  - Practical Applications of Dynamic Choice and Optimal Annuitization
AID  - 10.3905/pa.2015.3.2.125
DP  - 2015 Oct 31
TA  - Practical Applications
PG  - 1--3
VI  - 3
IP  - 2
4099  - https://pm-research.com/content/3/2/1.6.short
4100  - https://pm-research.com/content/3/2/1.6.full
AB  - Dynamic Choice and Optimal Annuitization Blanchett David In his new Journal of Retirement article, David Blanchett —Head of Retirement Research at Morningstar Investment Management —shows how shifting from a static, research-driven model to a dynamic, real-world model could halve the amount of capital you allocate to annuities at retirement and delay the timing of annuitization for up to 10 years. Adopting a dynamic annuitization model has the potential to boost your risk-adjusted returns in retirement by more than 1% a year!His article, Dynamic Choice and Optimal Annuitization , illustrates how the annuity puzzle may not be such a puzzle after all, Blanchett says. The traditional static approach to retirement planning that has limited the penetration of annuities as an important form of insurance, he maintains.TOPICS: Retirement, fixed income and structured finance