RT Journal Article
SR Electronic
T1 How to Evaluate Target-Date Funds: <em>A Practical Guide</em>
JF The Journal of Retirement
FD Institutional Investor Journals
SP 68
OP 81
DO 10.3905/jor.2019.1.048
VO 6
IS 4
A1 Radu Constantin Gabudean
A1 Richard A. Weiss
YR 2019
UL https://pm-research.com/content/6/4/68.abstract
AB The article describes and showcases a framework to analyze life-cycle, or target-date, investment strategies with intuitive, practical metrics. Anchored in the complex theory of life-cycle investing, we propose a comprehensive collection, or “dashboard,” of measures to capture various aspects of the problem: wealth-focused versions of return and risk concepts; the link between retirement contributions and portfolio returns; the strategy’s ability to support income in retirement; and behavior around retirement, a period when risk to invested wealth is greatest. These metrics are synthesized into one holistic view based on investor-specific preferences, highlighting the connection between investor characteristics and the life-cycle investment problem.TOPICS: Wealth management, long-term/retirement investing, pension funds