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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: lentilman on January 13, 2014, 07:11:10 AM

Title: New article prefers rising glide path
Post by: lentilman on January 13, 2014, 07:11:10 AM: 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/ (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 (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)
Title: Re: New article prefers rising glide path
Post by: brainfart on June 01, 2015, 01:13:46 PM: https://www.researchaffiliates.com/Our%20Ideas/Insights/Fundamentals/Pages/F_2012_Sep_The_Glidepath_Illusion.aspx
Title: Re: New article prefers rising glide path
Post by: partgypsy on June 01, 2015, 03:36:17 PM: 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.
Title: Re: New article prefers rising glide path
Post by: slugline on June 01, 2015, 03:46:20 PM: 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?
Title: Re: New article prefers rising glide path
Post by: nereo on June 01, 2015, 03:48:13 PM: Quote from: lentilman on January 13, 2014, 07:11:10 AM

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 (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.
Title: Re: New article prefers rising glide path
Post by: slugline on June 01, 2015, 03:52:39 PM: Quote from: nereo on June 01, 2015, 03:48:13 PM
Quote from: lentilman on January 13, 2014, 07:11:10 AM

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 (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.
Title: Re: New article prefers rising glide path
Post by: Eric on June 01, 2015, 03:53:03 PM: Quote from: nereo on June 01, 2015, 03:48:13 PM
Quote from: lentilman on January 13, 2014, 07:11:10 AM

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 (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!
Title: Re: New article prefers rising glide path
Post by: neo von retorch on June 01, 2015, 03:55:32 PM: 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.