TY - JOUR T1 - Optimal Portfolio Choice with Annuities and Life Insurance for Retired Couples JF - Review of Finance Y1 - 2014 A1 - Hubener, Andreas A1 - Maurer, Raimond A1 - Rogalla, Ralph KW - Adult children KW - Insurance KW - Net Worth and Assets AB - Using a portfolio choice model, we derive the optimal demand for stocks, bonds, annuities, and term life insurance for a retired couple with uncertainty in both lifetimes. We show that the optimal portfolio is heavily weighted with joint annuities and that life insurance is purchased mainly to protect a surviving spouse from loss of annuitized income rather than for bequest. Consistent with these predictions, empirical analyses on Health and Retirement Study data indicate that life insurance holdings are related to the degree of asymmetry in the couple's annuitized income distribution. PB - 18 VL - 18 IS - 1 N1 - Times Cited: 0 U4 - Married couples/Life insurance/Portfolio choice/Annuities ER -