Liftoff to retirement: A rising equity glide path may be the best choice

09/26/2013 | Nerd's Eye View blog

In the current investing climate, advisers need to help clients planning for retirement avoid the pitfall of "sequence risk," where market volatility can create a risk of a downturn depleting retirement assets. Financial blogger Michael Kitces discusses how a rising equity glide path in a bucket strategy that implements spending down fixed-income assets can actually improve retirement outcomes. While clients may be concerned about increased equity exposure during later retirement years, Kitces explains that a rising glide path can lead to a lower average equity exposure with more favorable outcomes, as long as portfolio rebalancing is employed in a systematic way.

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