Target-date funds can offer a streamlined solution for retirement investing. These mutual funds feature an asset allocation that automatically shifts over time as you get closer to your target ...
The allocation process for a target-date fund may be more than shifting from equities to fixed income over time. Instead, to maintain an appropriate balance at different lifecycle stages, there may be ...
A paper published in The Journal of Retirement argues that asset-allocation glide paths popularized in target-date funds (TDFs) fail to deliver superior end-point wealth. Traditional glide paths ...
Academic simulations prove that the distribution of wealth is greater with glide paths that increase in equity allocation rather than decrease. No safe landing. Savings impact the distribution of ...
This article was originally published on ETFTrends.com. Target date funds that have reached the end of their glide path and have a 30% stocks, 70% bonds allocation may produce essentially no return on ...
While glide paths are an institutionalized process in target date funds, most investors follow some sort of glide path process – ad hoc or not – that reduces their risk profile over their investment ...
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Zachary Rayfield, head of goals-based investing research in Vanguard's Investment Strategy Group, spoke about the use of glide paths at the Investments & Wealth Institute's Strategy Forum in New York ...
My colleague John Rekenthaler recently observed that the problem with target-date fund research is that researchers need to find dramatic conclusions to get any attention, and this has led to ...
Target date fund risk profiles should align with evolving participant objectives along the retirement savings journey and we believe fixed income plays a critical role in managing risk. In our view, ...
With traditional glide paths, a portfolio shifts gradually from equities to fixed income before reaching a final balanced portfolio allocation. Ron Surz, president of Target Date Solutions in San ...
The present contains all possible futures. But not all futures are good ones. Some can be quite cruel. The one we actually get is dictated by the choices we make. For the last few months I have been ...