Post #226 by rayvt on the Retirement Investing board

Personal Finance Topics / Retirement Investing

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Don't the studies you're thinking of show it is best to ramp down the stock allocation going into retirement, which is what the target date funds do, then ramp back up as sequence of returns risk becomes less?

I don't know. Frankly, ramping (either way) your asset allocation never made sense to me. So I have never paid a whole lot of attention to these studies. The first I heard of rising glide path was a Kitces article in 2013, here it is almost 2024 and large institutions are still pushing declining guide path.

Ditto for sequence of returns risk, since there is nothing magic about the date you retire. EVERYday is the first day of the rest of your investment portfolio, so the SORR on the 5th year of retirement is no different than on the first day of retirement. It's just that you are 5 years closer to death.

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