电子科技大学:《金融学基础》(英文版)Chapter 5: Life-Cycle Financial Planning
Consumption over the Life Cycle You are currently 35 years old, expect to retire in 30 years at age 65, and then to live for 15 more years until age 80 u You current income is $30,000 per year, and you real labor income adjusted for inflation remains at $30,000 per year until age 65 u The real rate of interest is 3% per year u Assume you plan to consume a constant stream of the same amount in each of the next 45 years, denoted by
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Finance School of management Labor Income and consumption 35000 300001 25000 20000 lab inc s15000 consump 10000 5000 0 45 55 60 70 75 80 -5000 esTc Age
6 Finance School of Management Labor Income and Consumption -5000 0 5000 10000 15000 20000 25000 30000 35000 35 40 45 50 55 60 65 70 75 80 Age Real $ lab_inc consump
Finance School of management Human Capital and wealth 700000 600000 fund 500000 HumanCap Capital 400000 300000 200000 100000 0 65 100000 ge uesTc See exce
7 Finance School of Management Human Capital and Wealth -100000 0 100000 200000 300000 400000 500000 600000 700000 35 45 55 65 75 Age Real $ fund HumanCap Capital See Excel
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