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The Daily Churn

Ep 62 - The Big Churn: Glidepath Investment Strategy

Apr 24, 2024
Explore the benefits of optimizing retirement portfolios with glide path investment strategy over target date funds. Learn about post and pre-retirement glidepaths, how to implement them, and important caveats to consider. Discover the importance of active engagement in investment decisions and maximizing portfolio growth for a sustainable retirement.
01:11:22

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Quick takeaways

  • Custom glide paths post-retirement optimize growth, hedging against sequence of returns risk.
  • Pre-retirement strategy includes starting at 100% equities, gradually reducing to 60% for optimal growth.

Deep dives

The Optimal Glide Path for Post-Retirement

Post-retirement, the optimal strategy is to start with a 60% equity allocation that glides upward to 100% equities. This approach hedges against sequence of returns risk, providing early stability and long-term growth potential. Historical data supports this strategy over fixed allocations or downward gliding paths like those in target date funds, offering improved retirement outcomes with minimal effort.

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