Heuristic portfolio rules with labor income
提出一个简单的启发式投资组合规则，将股票配置与劳动收入财富比和年龄线性关联，相比最优策略福利损失仅0.35%消费，比实际数据中个人策略福利提升约2.2%。
We propose a heuristic portfolio rule, which significantly simplifies individuals' asset allocation decisions over the life cycle. Under this heuristic, equity exposure is a linear function of the individual's labor-to-wealth ratio and age. When individuals follow our heuristic, welfare gains when switching to the optimal policy are only 0.35% of lifetime consumption (around USD 9,800). Relative to portfolio strategies used by individuals in the data, welfare gains from using our heuristic are about 2.2% (around USD 61,600). Our results are robust to different educational attainments and family structures.