RT Journal Article
SR Electronic
T1 Bait and Switch: <em>Glide Path Instability</em>
JF The Journal of Investing
FD Institutional Investor Journals
SP 74
OP 82
DO 10.3905/joi.2013.22.1.074
VO 22
IS 1
A1 Thomas Idzorek
A1 Jeremy Stempien
A1 Nathan Voris
YR 2013
UL https://pm-research.com/content/22/1/74.abstract
AB With target date funds widely expected to account for more than 50% of all defined contribution assets in the near future, it is difficult to overstate their importance on the retirement security of America. Yet there are very few tools and statistics for monitoring and evaluating target date funds. This article highlights a previously unrecognized characteristic of target date fund families: Glide paths aren’t necessarily stable over time, and in some cases change dramatically. We document the stability, or lack of stability, of the glide paths for the largest target date fund families and introduce quantitative measures of glide path stability, including our preferred measure, the Glide Path Stability Score.TOPICS: Retirement, quantitative methods