tpCFwork: Third Pillar Cash Flows during savings phase

In sstoeckl/pensionfinanceLi: Optimal Pension Decisions in Liechtenstein

Description

Cash Flows are generated for the savings phase of the third pillar, starting at c_age until ret_age

Usage

tpCFwork(
  ret_age = 65,
  c_age,
  w3,
  free_cf_before_tax,
  retr,
  s3,
  w0,
  psi = 0.015,
  c,
  warnings = TRUE
)

Arguments

ret_age	optional, retirement age, can be set anywhere between 60 and 70 (default: 65)
c_age	the investor's current age (assuming birthday is calculation-day)
w3	third pillar portfolio allocation (given either as vector (constant investment or as matrix with entries) for all remaining years
free_cf_before_tax	remaining cash flow after contributing to first and second pillar
retr	investment return scenarios (real)
s3	liquid wealth - invested in the third pillar (current assumption: no tax advantage for third pillar)
w0	time c_age wealth that is not disposable, assumption: still available at retirement (no growth or decline), alternatively: expected wealth (that is not disposable) at retirement
psi	optional, spread to take a loan/leverage for third pillar savings
c	fraction of income that is consumed while still working (current assumption: constant)
warnings	optional: should warnings be given? (default=TRUE)

Value

list with two elemnts: - Consumption during savings years (matrix with dim=c(sav_years,# of Scenarios)) - Development of wealth during savings years (matrix with dim=c(sav_years,# of Scenarios))

Examples

data(ret); data(retr)
free_cf_before_tax <- c(81000.00,81810.00,82628.10,83454.38,
84288.92,85131.81,85983.13,86842.96,87711.39,88588.51,
89474.39,90369.14,91272.83,92185.56,93107.41,94038.49,
94978.87,95928.66,96887.95,97856.82,98835.39,99823.75,100821.98)
tpwork_ex <- tpCFwork(ret_age=65,c_age=42,
w3=setNames(c(.25,.25,.25,.25,0),c("msci","b10","recom","libor","infl")),
           free_cf_before_tax=free_cf_before_tax,
           retr=retr[,,1:10],s3=300000,w0=300000,psi=0.015,c=0.6)
tpwork_ex2 <- tpCFwork(ret_age=65,c_age=42,
w3=setNames(c(.30,.30,.30,.10,0),c("msci","b10","recom","libor","infl")),
           free_cf_before_tax=free_cf_before_tax,
           retr=retr[,,1:10],s3=0,w0=0,psi=0.015,c=1)

sstoeckl/pensionfinanceLi documentation built on Dec. 2, 2020, 3:26 a.m.