The Study Of Optimal Strategy On Consumption,Investment And Life Insurance Purchase

The government work report of the Second Session of the Thirteenth National People’s Congress pointed out that China’s interest rate liberalization reform is in the deepening stage.The interest rate liberalization reform makes the interest rate level determined by the market,with the result that the fluctuation of interest rate becomes a common phenomenon.In addition,with the development of the economy and the expansion of the opening to the outside world,the improvement of financial market increases the range of the investment and the consumption-investment portfolio of the investor has been diversified a lot.Therefore,investors are no longer limited to buy stocks,bonds and other products in the security market to obtain investment returns.According to the data published by China Banking-Insurance Regulatory Commission,Chinese insurance market is developing rapidly and the life insurance incomes of insurance enterprises are increasing year by year,which means that many investors choose to embrace life insurance into their portfolios aiming to gain investment income.At the same time,what can be seen from the relevant data published by National Bureau of Statistics of the People’s Republic of China is that the purchase of real estate and automobiles has increased year by year.However,traditional consumption-portfolio theory is mostly focused on non-durable goods study in the consumer goods market and securities study in the security market,which is no longer applicable to the consumption-investment environment faced by today’s investors.Based on above analysis,the study is carried out from two aspects: One is to study the optimal consumption-investment-life insurance purchase strategy under the condition of stochastic interest rate market.By introducing the stochastic interest rate and the life insurance purchase into the consumption-investment portfolio model,the model is closer to the actual consumption-investment environment.The explicit solution of the model is obtained through the theory of expected utility maximization theory,dynamic programming theory and Legendre transform.By using the method of numerical simulation analysis,the impact of relevant variables’ changes on the investor’s consumption and investment is analyzed.This model provides a theoretical basis for the investor who faces interest rate liberalization and life insurance investment environment to make optimal consumption-investment strategy.The other is to study the optimal consumption-investment-life insurance purchase strategy with perishable and indivisible durable goods.By subdividing consumption goods into perishable and indivisible durable goods,the model can better describe the current consumption environment including real estate,automobile and other durable goods.The introduction of life insurance will enrich the investment portfolio of the investor and expand the scope of application of the model.Then,the existence of the positive root in the model through the method of listing cases is discussed.By using MATLAB to carry out numerical simulation analysis,it is proved that the investor’s investment behavior in the model is consistent with the behavior of the rational economic person,so the model has a theoretical guiding significance to the investment of real investors.In the end,the conclusions of the full-text research are summarized.Besides,relative policy recommendations are offered to the government and some family financing advice is offered to the personal investor.