Optimal asset allocation during retirement in the presence...

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Reexamination Certificate

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C705S004000

Reexamination Certificate

active

07120601

ABSTRACT:
A method, system and medium for optimally allocating investment assets for a given investor within and between annuitized assets and non-annuitized assets retrieves an investor's utility of consumption, utility of bequest, objective and subjective probabilities of survival and expected rates of return from each of a plurality of annuity and nonannuity assets having varying degrees of risk and return. Based on these inputs, an objective utility function is maximized by adjusting the asset allocation weights. The optimal asset allocation weights may be used to allocate the assets of the investor's portfolio among predetermined investment vehicles or as an analytical tool by portfolio managers.

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Professor Laurenc

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