Sentences with phrase «equity glidepath»

Both the February and March 2015 issues of the Journal of Financial Planning include articles which address and extend the work on rising equity glidepaths during retirement, which Michael Kitces and I published in the January 2014 issue.

-LSB-...] see, a lot of my safe withdrawal rate simulations assume either constant equity weights (e.g. 80/20) or a rising equity glidepath in early retirement -LSB-...]

It does indeed seem that retiring at times with particularly low bond yields, which can be expected to increase over time, may not favor rising equity glidepaths during retirement.

Meanwhile, David looks at the lower interest rate component without specifically considering the high stock market valuation component (his capital market expectations are described in Appendix 1, and his stock returns are not related to past stock returns), and he concludes that declining equity glidepaths are best.

This is a follow - up from last week's post on equity glidepaths to address a few more open questions:

Your IPS can be very detailed (such as elaborating on the tolerances for an increasing equity glidepath) or very simple.

The more downbeat the return assumptions1, the less difference a rising equity glidepath makes in comparison to conventional strategies.

As we wrote, our results suggest that the valuation - based approach is generally superior to the rising equity glidepath approach and the fixed equity allocation portfolios, as the valuation - based scenarios produce comparable - to - slightly - better results across the board.

Admittedly, the March one is also by us, and I'll get to that it an moment, but the February article challenges the rising equity glidepath concept and is by David Blanchett.

Michael and I look at the market valuation component without specifically considering the interest rate component, and we determined that this is the time when rising equity glidepaths have tended to provide the best results for historical retirements.

The authors suggest that the rising equity glidepath can be managed using a rule like rebalancing 1 % of your portfolio per year from fixed income to equity.

I've chosen this plus an equity glidepath with having a bond / cash allocation to start and weening up to an all - equity, efficient frontier weighted portfolio.

Notably, a strategy that builds up extra bonds in the years leading up to retirement is what many target date funds already do, with an «equity glidepath» that gets incrementally more conservative each year before retirement anyway.

With a 4 % withdrawal rate, he finds that declining equity glidepaths in retirement support higher probabilities of success than fixed equity glidepaths, which in turn supports higher probabilities of success than rising equity glidepaths.

This is not to say that rising equity glidepaths are never a good idea, though.