Supplement to past couple posts on asset allocation, risk aversion, and horizon

This is an add on to the past cpl posts. Assumptions are the same except where called out. The past two posts are here: 

• Asset Allocation and Risk Aversion in a No Consumption Model
• Asset Allocation, Certainty Equivalents and Time Horizon

 Again, 

• No spending 
• Still centered on a CRRA style evaluation at fixed horizons
• Human Longevity not in this post at all
• Assumptions mostly as in first bullet pt. link above

Asset Allocation, Certainty Equivalents and Time Horizon

This is a follow on to the last post 

   - Asset Allocation and Risk Aversion in a No Consumption Model

and the only change here is the following 

•  The risk aversion coefficient is pegged at "2," for reasons
•  The horizon is now varied: 10y, 20y and 50 years

With the goal: see what happens to "optimal" certainty equivalent wealth by way of asset allocation at each horizon, keeping in mind my version of "optimal" is not mathematical but a visual shoot-from-the-hip guess. This guess will be poisoned by scaling of the Y axis but so be it. Just winging it here.

Asset Allocation and Risk Aversion in a No Consumption Model

I swear I've done this before but idk. I did a quick spreadsheet the other day on asset growth and asset allocation for a conversation with a friend and I thought I'd flesh out the idea a little more [3]. The basic idea is what is the expected CRRA utility of wealth, in certainty equivalent terms, at T=20 (arbitrary) for a given simple 2 asset portfolio with return and std dev of .01/.04 and .07/.25 corr coeff = -.20 (really really arbitrary) in real terms? For my conversation I had used coefficient of risk aversion of 2 (another arbitrary but I've always thought of 2 as "mine" but whatever). Here the goal is to push the RA coeff up and down to see what happens to asset allocation. 

Another Quick Reflection on 12 Years of this Ret-fin Stuff

Here is another reflection after 12 years of retirement finance. Me? I feel like I took this stuff pretty far for myself, from: rules-of-thumb to formulas to spreadsheets to automated spreadsheets to R code to esoterica like backward induction and pseudo-reinforcement-learning. But I don't think, with the remove of a year or two now, that those latter efforts were as additive as I thought they were at the time. I would call them more "confirmatory" of things already known or at least more easily known.