The work presented here aims to show different strategies in order to increase the replacement rate obtained by a worker at retirement age. Usually, these strategies are set in a deterministic approach, but in this work we assume that the expected returns of the funds have a stochastic behavior. For this purpose, we take as basis the current accumulation model from a representative Latin American country as Mexico, from which we undertake sensitive analysis in order to optimize the asset allocation of the portfolio, the amount of the contribution rate and the age of retirement, to obtain a target replacement rate. The results suggest that a well-diversified portfolio, an age of retirement of 68 and a contribution of 10% of the salary, is the most effective strategy to follow.
JEL Codes: C15, G11, J32
Total Reviews: 0
Price:$9.99
March 2020 (International Review of Business Research Papers) → Ethical Factors Affecting the Financial Market: A Study from Bangladesh Perspectives
March 2020 (International Review of Business Research Papers) → Female Labor Force Participation with Adverse Shocks: The Case of Rural Households in Bangladesh
September 2016 (Journal of Modern Science and Technology) → Cost Effective Decisions on Service Rate at a Customer Care Centre with Multi-Server Queuing Model
September 2017 (International Review of Business Research Papers) → Remittance, Exchange Rate and Dutch Disease: The Case of Bangladesh
$9.99
July 2015 (Journal of Business and Policy Research) → Perceived Importance of Defensive Marketing Strategies Before and After Competitor Entry: Does Nationality Matter?
$9.99
Reviews
There are no reviews yet.