BEGIN:VCALENDAR
PRODID:-//Columba Systems Ltd//NONSGML CPNG/SpringViewer/ICal Output/3.3-
 M3//EN
VERSION:2.0
CALSCALE:GREGORIAN
METHOD:PUBLISH
BEGIN:VEVENT
DTSTAMP:20211001T080557Z
DTSTART:20211006T140000Z
DTEND:20211006T150000Z
SUMMARY:Thomas Bernhardt  -  Tontines with bequest
UID:{http://www.columbasystems.com/customers/uom/gpp/eventid/}fkk-ku830sn
 p-8cc3jp
DESCRIPTION:Thomas Bernhardt (University of Manchester) will speak in the
  Probability seminar. \n\nTontines offer a great alternative to current 
 pension products.\nMembers invest in a financial market and receive an a
 dditional stream of income from passed away peers.\nBut\, like annuities
 \, tontines suffer from pensioners' reluctance to fund the additional st
 ream by giving up wealth at death.\n\nPromoting tontines\, we analyze th
 e effect of a bequest motive on the decision to invest in a tontine.\nWe
  formulate an investment problem where a pensioner chooses the percentag
 e of wealth in the tontine\, an investment strategy and their consumptio
 n rate.\nThe investment problem is formulated such that the optimal stra
 tegy maximizes the utility of lifetime consumption and the left behind b
 equest.\n\nWe show that\, for a risk-averse investor\, the optimal fixed
  percentage in the tontine is around $80\\%$ for a wide range of risk av
 ersion and different bequest motives.\nWe present the case of a flexible
  percentage together with a discussion about its suitability together wi
 th how we attempt to solve its issues.
STATUS:TENTATIVE
TRANSP:TRANSPARENT
CLASS:PUBLIC
LOCATION:https://zoom.us/j/97200455451
END:VEVENT
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