TY - JOUR T1 - Glide Paths Based on a Retirement Goal and Depleting Human Capital JF - The Journal of Investing SP - 8 LP - 16 DO - 10.3905/joi.2019.28.1.008 VL - 28 IS - 1 AU - Peter Mladina AU - Charles Grant Y1 - 2019/01/31 UR - https://pm-research.com/content/28/1/8.abstract N2 - The retirement goals of many Americans are underfunded. The problem is compounded by the complexity of self-managing distribution portfolios, particularly as DC plans replace DB plans. We believe most retirement glide paths are satisfactory but suboptimal solutions. We introduce a glide path of financial assets over the life cycle based on a retirement goal and depleting human capital. The method is anchored to the foundational principles of intertemporal portfolio theory while borrowing heavily from goals-based asset allocation. The result is a dynamic asset allocation over the life cycle that is a function of critical input variables relevant to retirement planning such as retirement savings, retirement consumption and risk aversion. The glide path can be customized to individuals, or semi-customized to discrete subpopulations of DC plan participants.TOPICS: Retirement, wealth management ER -