Nicholas Pension Consultants
Nova 401(k) Associates
Compensation Strategies Group, Ltd.
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|Glide Path Caution: A Steep Slope Could Derail Retirement Income Success (PDF)|
Mar. 8, 2015
"Glide path slope -- the rate of change in equity exposure over time -- is often overlooked when evaluating the likelihood for a target date portfolio to achieve its retirement income objectives. During the past year, a number of target date fund providers increased the equity exposure of their glide paths. This asset allocation shift resulted in a steepening of glide path slope, leading to increased 'slope risk' -- the risk of either failing to recover retirement savings after a cyclical equity market decline or foregoing the benefit of an equity market expansion. [This article examines] the influence that glide path slope has on retirement wealth accumulation and preservation."
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