Regional Vice President of Sales The Retirement Plan Company
|
Bates & Company, Inc.
|
AimPoint Pension
|
Loan & Distribution Specialist AimPoint Pension
|
Defined Benefit Combo Cash Balance Compliance Consultant Loren D. Stark Company (LDSCO)
|
Compass
|
“BenefitsLink continues to be the most valuable resource we have at the firm.”
-- An attorney subscriber
Dynamic Lifecycle Strategies for Target Date Retirement Funds
Social Science Research Network Dec. 17, 2008
Excerpt: Lifecycle funds offered to retirement plan participants gradually reduce their exposure to stocks as they approach the target date of retirement. This movement away from equities and towards less volatile assets like bonds and cash is done to emphasize growth of the portfolio in the initial years and preservation of capital in the later years. We show that such deterministic switching rules produce inferior wealth outcomes for the investor compared to strategies that dynamically alter the allocation between growth and conservative assets based on cumulative portfolio performance relative to a set target.
|
Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the linked news item's title). |
An important word about authorship: BenefitsLink® created this link to the news item, but we are not the news item's author (unless expressly shown above). |