Zephyr-Securities.com Research Concludes Asset Glide Path Should 'Land' When Investor Retires
10/19/2015

Is It ‘‘To” or “Through?” Analysis Yields New Lessons for Retirement Saving, Investing, Spending

Online PR News – 19-October-2015 – Hong Kong – The asset allocation, or glide path, of a target date fund (TDF) should reach its final “landing point” at the investor's actual retirement date - and not continue to change as the investor moves through the retirement years.

That is a key conclusion of new research released today by Zephyr Securities, examining the widely discussed question of “to” vs. “through” – with “to” referring to TDFs with glide paths that reach a final allocation point when the investor retires, and “through” referring to funds that continue to “de-risk,” especially by reducing the equity allocation, following retirement. Investments in a TDF are automatically rebalanced and reallocated over time to become more conservative as the investor ages.

“Our research yielded both ‘common sense’ as well as rigorous, analytical justification for the idea that whatever point the fund’s glide path – in particular, the equity allocation - has hit when an individual retires, it should remain at that point from then on,” said Daniel Wai Sheung, head of Zephyr Securities’ US Retirement Group.

“Putting the ‘to vs. through’ debate to rest is just one step in helping workers better understand how to save for retirement,” he said. “To that end, our research examined far more than 'to vs. through;' rather, we probed a wide range of lifecycle investing questions, with the goal of replacing numerous ‘rules of thumb’ with tested, actionable suggestions around saving and investing for retirement."

“Because the day you actually retire is so risky, it’s imperative to have your portfolio risk correctly set at that point,” Daniel said.

About Zephyr Securities
Zephyr Securities (www.zephyr-securities.com) is Hong Kong’s first truly integrated, full service Asset and Wealth Management company combining the best of local and global expertise. We understand that true wealth extends beyond mere money, and our client-centric mandate embraces both scientific elements of investment decision making and emotional comfort. We also offer global asset management. This involves utilizing our network with prominent local partners to establish venture capital funds that invest in China and other emerging economies that are expected to experience strong growth. In addition to increasing profitability for our clients Zephyr Securities is striving to maximize our corporate value.

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