New article prefers rising glide path

[lentilman]

Counter to conventional advice, a new journal article (Pfau) shows that a rising stock % in retirement is preferable to alternatives.

Here is a link to the journal: http://www.fpanet.org/journal/ReducingRetirementRiskwithaRisingEquityGlidePath/

Here is a link to a a WSJ summary of the article: http://online.wsj.com/news/articles/SB10001424052702304866904579268332305015074?ru=yahoo?mod=yahoo_itp&mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304866904579268332305015074.html%3Fru%3Dyahoo%3Fmod%3Dyahoo_itp

[brainfart]

https://www.researchaffiliates.com/Our%20Ideas/Insights/Fundamentals/Pages/F_2012_Sep_The_Glidepath_Illusion.aspx

[partgypsy]

I think this stuff is interesting. I'm not sure I'm sold on the rising glide path, simply because one's adversity to risk may increase, and so over one's lifetime one is having both the total amount of money in stock and percentage in stock increase over time. 

To me the ideal situation would be, once you reach retirement age, to take enough out of stocks earnings to create an  annuity that covers 70-90% of your living expenses. If you have ss, the ss+annuity giving you 80-90% of living expenses. Then leave the rest in stocks letting it ride.

[slugline]

I think I need more explanation. I'm not sold yet on the "U-shaped glide path." Isn't that basically market timing, locking in much of your gain/loss around the time of your retirement?

[nereo]

Here is a link to a a WSJ summary of the article: http://online.wsj.com/news/articles/SB10001424052702304866904579268332305015074?ru=yahoo?mod=yahoo_itp&mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304866904579268332305015074.html%3Fru%3Dyahoo%3Fmod%3Dyahoo_itp

arg.... any convenient way to view this WSJ article?   - it's stuck behind a paywall.

[slugline]

Here is a link to a a WSJ summary of the article: http://online.wsj.com/news/articles/SB10001424052702304866904579268332305015074?ru=yahoo?mod=yahoo_itp&mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304866904579268332305015074.html%3Fru%3Dyahoo%3Fmod%3Dyahoo_itp

arg.... any convenient way to view this WSJ article?   - it's stuck behind a paywall.

Enter the terms

What You Know About Retirement Investing Is Wrong Wall Street Journal

into a search engine, and link from there. This tactic can sneak you around many paywalls.

[Eric]

Here is a link to a a WSJ summary of the article: http://online.wsj.com/news/articles/SB10001424052702304866904579268332305015074?ru=yahoo?mod=yahoo_itp&mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304866904579268332305015074.html%3Fru%3Dyahoo%3Fmod%3Dyahoo_itp

arg.... any convenient way to view this WSJ article?   - it's stuck behind a paywall.

Google the article title, and then follow the link from Google.  Viola!

[neo von retorch]

I'd also like to see 80/20 static in that Glidepath Illusion article. i.e. Glidepath vs 50/50 vs Inverse... vs. 80/20.