PT - JOURNAL ARTICLE AU - Robert D. Arnott AU - Katrina F. Sherrerd AU - Lillian Wu TI - The Glidepath Illusion… and Potential Solutions AID - 10.3905/jor.2013.1.2.013 DP - 2013 Oct 31 TA - The Journal of Retirement PG - 13--28 VI - 1 IP - 2 4099 - https://pm-research.com/content/1/2/13.short 4100 - https://pm-research.com/content/1/2/13.full AB - Target-date investment strategies purport to meet the two primary objectives of any retirement savings program: maximizing the real value of investors’ nest eggs while minimizing uncertainty around prospective income in retirement. The authors demonstrate that the classic glidepath approach to retirement investing—moving from equity-centric to bond-centric investing as we age—does not meet these objectives.The authors summarize the flaws in traditional glidepath implementation and explore illustrative changes to the rules-based, mechanistic solution for retirement planning that can improve the expected outcome for investors, using simulations to test alternatives. Their findings show that, even with simple rules-based approaches, there are better ways to achieve our financial objectives for retirement.TOPICS: Risk management, retirement, wealth management