I am 65 years old and will soon retire. I think it's difficult to choose my asset allocation in retirement. I have therefore tried to find studies of asset allocation in retirement. Do you know more?
Asset Allocation for a Lifetime (Bengen, 1996)
http://www.simonemariotti.com/downloads ... n%2096.pdf
Lifetime asset allocation for virtually all clients can be managed through use of the following two asset allocation equations: % of portfolio in stocks = (115 to 140) minus your age. The vast majority of clients would be expected to use a number in the middle of that rage namely 128 and 133.
Retirement Savings: Choosing a Withdrawal Rate That Is Sustainable (Cooley, Hubbard, Walz, 1998)
https://www.aaii.com/journal/199802/feature.pdf
Most retirees would likely benefit from allocating at least 50% to common stocks.
Dynamic Allocation Strategies for Distribution Portfolios: Determining the Optimal Distribution Glide Path (Blanchett, 2007)
https://www.financialplanningassociatio ... folios.pdf
Therefore, based on the research conducted for this paper, as well as other qualitative and practical considerations, the optimal allocation for most retirees is likely a balanced portfolio, such as a 60 percent equity and 40 percent fixed income/cash allocation.
The Retirement Glidepath: An International Perspective (Estrada, 2015)
https://blog.iese.edu/jestrada/files/20 ... path-2.pdf
And yet a simple, static all‐equity portfolio or a 60‐40 stock‐bond allocation are not only easy for retirees to implement but also supported by the comprehensive evidence discussed here.
The Retirement Glidepath: A Vote for Static Asset Allocations (Estrada, 2015)
https://blog.iese.edu/jestrada/files/20 ... IRP-G2.pdf
The US evidence analyzed here suggests that, relative to dynamic asset allocation strategies, a 60/40 stock/bond portfolio would provide retirees lower probabilities of portfolio failure, higher bequests, and better downside protection when tail risks strike.
Initial Conditions and Optimal Retirement Glide Paths (Blanchett, 2015)
https://www.financialplanningassociatio ... lide-paths
Using a model based on historical long-term averages indicates an increasing glide path may be optimal; however, a model that is better calibrated to today’s low yield and high valuation environment suggests that a decreasing glide path may be best for retirees, especially those with higher initial withdrawal rates or longer retirement periods
Revisiting the Optimal Distribution Glide Path (Blanchett, 2015)
https://www.financialplanningassociatio ... glide-path
The results of the analysis suggest that the actual relative attractiveness of a given glide path is likely to vary by scenario and assumptions; however, decreasing glide path shapes—glide paths where the equity allocation decreases during retirement—appear to be more efficient when compared to the other three changing glide path shapes considered, as well as a constant equity glide path.
Asset Allocation for a Lifetime (Bengen, 1996)
http://www.simonemariotti.com/downloads ... n%2096.pdf
Lifetime asset allocation for virtually all clients can be managed through use of the following two asset allocation equations: % of portfolio in stocks = (115 to 140) minus your age. The vast majority of clients would be expected to use a number in the middle of that rage namely 128 and 133.
Retirement Savings: Choosing a Withdrawal Rate That Is Sustainable (Cooley, Hubbard, Walz, 1998)
https://www.aaii.com/journal/199802/feature.pdf
Most retirees would likely benefit from allocating at least 50% to common stocks.
Dynamic Allocation Strategies for Distribution Portfolios: Determining the Optimal Distribution Glide Path (Blanchett, 2007)
https://www.financialplanningassociatio ... folios.pdf
Therefore, based on the research conducted for this paper, as well as other qualitative and practical considerations, the optimal allocation for most retirees is likely a balanced portfolio, such as a 60 percent equity and 40 percent fixed income/cash allocation.
The Retirement Glidepath: An International Perspective (Estrada, 2015)
https://blog.iese.edu/jestrada/files/20 ... path-2.pdf
And yet a simple, static all‐equity portfolio or a 60‐40 stock‐bond allocation are not only easy for retirees to implement but also supported by the comprehensive evidence discussed here.
The Retirement Glidepath: A Vote for Static Asset Allocations (Estrada, 2015)
https://blog.iese.edu/jestrada/files/20 ... IRP-G2.pdf
The US evidence analyzed here suggests that, relative to dynamic asset allocation strategies, a 60/40 stock/bond portfolio would provide retirees lower probabilities of portfolio failure, higher bequests, and better downside protection when tail risks strike.
Initial Conditions and Optimal Retirement Glide Paths (Blanchett, 2015)
https://www.financialplanningassociatio ... lide-paths
Using a model based on historical long-term averages indicates an increasing glide path may be optimal; however, a model that is better calibrated to today’s low yield and high valuation environment suggests that a decreasing glide path may be best for retirees, especially those with higher initial withdrawal rates or longer retirement periods
Revisiting the Optimal Distribution Glide Path (Blanchett, 2015)
https://www.financialplanningassociatio ... glide-path
The results of the analysis suggest that the actual relative attractiveness of a given glide path is likely to vary by scenario and assumptions; however, decreasing glide path shapes—glide paths where the equity allocation decreases during retirement—appear to be more efficient when compared to the other three changing glide path shapes considered, as well as a constant equity glide path.
Statistics: Posted by Pensionisten2024 — Sun Dec 31, 2023 1:10 am — Replies 0 — Views 155