@article {Arnott13, author = {Robert D. Arnott and Katrina F. Sherrerd and Lillian Wu}, title = {The Glidepath Illusion{\textellipsis} and Potential Solutions}, volume = {1}, number = {2}, pages = {13--28}, year = {2013}, doi = {10.3905/jor.2013.1.2.013}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Target-date investment strategies purport to meet the two primary objectives of any retirement savings program: maximizing the real value of investors{\textquoteright} nest eggs while minimizing uncertainty around prospective income in retirement. The authors demonstrate that the classic glidepath approach to retirement investing{\textemdash}moving from equity-centric to bond-centric investing as we age{\textemdash}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}, issn = {2326-6899}, URL = {https://jor.pm-research.com/content/1/2/13}, eprint = {https://jor.pm-research.com/content/1/2/13.full.pdf}, journal = {The Journal of Retirement} }