Sponsored by The American College of Financial Services
An important issue in retirement income planning is choosing and adjusting the retirement portfolio’s asset allocation over time. With retirement income planning, the goal is not just to accumulate wealth, but to have sufficient assets to meet income needs throughout retirement.
In a series of video interviews, Professor David Littell and Dr. Wade Pfau from The American College of Financial Services discuss three approaches to adjusting asset allocation: age based, valuation based, and funded basis approaches.
These approaches ultimately target portfolio volatility, which is a problematic issue in the distribution phase of retirement. Financial advisors who are working in retirement income planning should be familiar with the following approaches.