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The Road To Retirement: Bumpy Or Smooth, Depends On Your Route, Anand Iyer, Madhusudan Subramanian, Vikash Punglia

WCBT Faculty Publications

Defined Contribution (DC) plans are rapidly becoming the primary retirement investment vehicle for a majority of employees across the US and other markets around the globe. Asset allocation for DC plans has to strike a balance between growth and protection assets over the savings lifecycle while protecting the long-term purchasing power of the nest egg. Due to the long duration of retirement investing and various risks associated with it, implementing the right asset allocation has become critical and challenging for DC plans. The unique Risk Focused methodology presented in this paper aims to address the shortcomings of conventional Target Date …