Analysing the c-minus-age strategy for life-cycle investing

Christine W. Lai*, Tsung Chyan Lai

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


The c-minus-age strategy is a popular strategy for life-cycle investing. When applying the c-minus-age strategy, an investor first chooses an indirect preference parameter c and at age t will hold a percentage of c minus t in equity assets. In this article, we use a linear and a multiplicative mean-variance utility function to quantitatively analyse the term structure of the mean-variance tradeoffs implied by the c-minus-age strategy. We also provide an optimal procedure to determine c, based on the two direct preference parameters, elicited from an investor, of a multiplicative mean-variance utility function.

Original languageEnglish
Pages (from-to)711-718
Number of pages8
JournalApplied Economics Letters
Issue number7
Publication statusPublished - 2009
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics


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