Are Glide Path Strategies Still a Good Option for Retirement

Are Glide Path Strategies Still a Good Option for Retirement?


July 29, 2021
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 an inflation-adjusted basis over the next ten years.
Target date funds operate under the assumption that someone’s asset allocation should follow a glide path, automatically shifting a portfolio to favor bonds over stocks as a person gets closer to their expected year of retirement.
The rationale for offering target date funds is presumably altruistic: help investors facing a long retirement to avoid investment mistakes that may deplete their nest egg.
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